Sachsida proposes taxing Petrobras’ extraordinary profit

SAO PAULO (Reuters) – The debate on the taxation of oil exports and the extraordinary profits of oil companies, such as Petrobras, must be held at this moment, said the Minister of Mines and Energy, Adolfo Sachsida, noting that, in principle, he is against the increase in taxes.

“Something transitory may be important, I don’t really like to increase taxes, I like competition… (But) honestly, I think it’s time for this debate, taxing part of the extraordinary profit is a relevant debate for the moment”, said the minister in audience in the Chamber of Deputies.

“But of course, seeing pros and cons, we have to debate,” he added, noting that care must be taken not to eventually benefit the largest companies, which could better deal with a higher tax.

“You have to be careful not to adopt medicine that kills a patient.”

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According to Sachsida, the taxation of oil exports is a proposal that must be analyzed.

“We will study, we will debate and verify the pros and cons and make the decision”, he commented.

The discussion on oil export taxation was raised by parliamentarians in the context of a rise in fuel prices that impacts consumers.

Although he reiterated several times during his speech that the government cannot intervene in Petrobras’ pricing policy, the minister stressed that various spheres of society and companies in the world have been making sacrifices to deal with the higher costs, aggravated by the war in Ukraine.

“It seems that everyone is making their contribution” on fuel prices, said the minister, noting that several oil companies have foregone gains by leaving Russia because of the war.

This move, he said, was made for companies to preserve their brands with consumers. He said that such oil companies accepted losses for long-term profit, in a thinly-veiled criticism of Petrobras.

The minister began his participation in the hearing by noting that Petrobras had profits above the average of its global peers in the first quarter.

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