Brazil to raise US$1.3bil from oil export tax

Haddad said the export tax rate will be set at 9.2% and will last for four months, until fuel tax exemptions given by the previous government are completely eliminated. — Bloomberg

BRASILIA: Brazil will tax oil exports to raise an estimated 6.6 billion reais (US$1.3bil or RM5.8bil) while gradually removing fuel tax breaks, a victory for Finance Minister Fernando Haddad, who’s struggling to shore up public finances.

State-controlled oil giant Petroleo Brasileiro SA extended losses on the news and closed down 3.5% in Sao Paulo. Smaller oil producers, 3R Petroleum and Petro Rio, also fell.