Oil lobby group says Brazil export tax is a hurdle to new investments

RIO DE JANEIRO, April ​8 (Reuters) - Brazil's export tax on crude oil created by the government about a ​month ‌ago is a hurdle for new investments by oil majors, said the ⁠head of lobby group IBP at an event ⁠on Wednesday, adding the ​group could file a lawsuit against it.

The 12% tax on exports was created as oil prices spiked due to the U.S.-Israeli war on ​Iran, when ‌the government also scrapped local taxes on fuel sales to lower prices to consumers.

"This tax is not opportune, especially given the need to demonstrate that Brazil is an attractive destination for long-term ​investments in the oil and gas sector," IBP head Roberto Ardenghy ‌said on the sidelines of the event.

The lobby group, which represents oil majors in Brazil, ‌will sue the government over the legality of the tax, said Ardenghy, adding that if Congress overturns the government's decision, or if Brazil decides ​to drop the tax, the lawsuit will not be filed.

The government did not immediately ‌reply to a request for comment.

During a panel, representatives of oil majors Shell , Spain's Repsol Sinopec, France's TotalEnergies, Norway's Equinor and Exxon stressed the ⁠need ⁠for fiscal and regulatory "stability" in Brazil to allow ‌for new investments.

The tax is a temporary levy designed to last until the ​end of this ​year, and is aimed at increasing domestic ‌refining and securing internal supply, the government said at the time of its launch about a month ago.

Shell

Total Energies

Equinor

Exxon Mobil