Tax and Operational Measures for the Fuel Sector
Thank you for reading this post, don't forget to subscribe!The Chamber of Deputies, acting as the decision-making chamber, has adopted a bill declaring a state of crisis on the crude oil and petroleum products market and introducing a set of temporary measures to protect consumers and the economy.
The proposed measures include a temporary reduction in the excise duty on diesel, setting the VAT rate at 19% for gasoline and diesel sold in the refining and distribution sector, and introducing a solidarity contribution for certain revenues obtained from the sale of processed fuels made from domestic crude oil.
To secure domestic stocks, diesel exports would only be permitted with the express approval of the competent authorities.
Flexibility in the Use of Biofuels
During the period in which the protection measures are in effect, oil operators could reduce the mandatory proportion of biofuel in gasoline placed on the market, from 8% to a minimum of 2%.
According to the bill, certain activities, such as refining, the first sale of products resulting from crude oil processing, and the import followed by the first sale of imported petroleum products, are exempt from some of these provisions.
New Reporting and Transparency Obligations
Operators in the fuel sector would be required to submit monthly reports on the prices charged to the Competition Council, the Ministry of Finance, the National Authority for Consumer Protection, and the Ministry of Energy.
The reports should be submitted within a maximum of 20 calendar days from the end of each month. In addition, the control authorities may request detailed information regarding the formation of prices and commercial markups, and companies must respond within no more than 10 days.
Penalties for Exceeding Commercial Markup Limits
The bill also introduces a gradual mechanism for sanctioning the exceeding of commercial markup limits. If the average excess does not exceed 5%, the administrative fine would be set at twice the total value of the excess, calculated based on the difference between the markup applied and the permitted limit, relative to the total volume of products sold.
For operators in the sector, the new provisions could have a significant impact on taxation, pricing policies, reporting, and cost documentation. Companies should monitor the progress of the legislative bill and the final form of the normative act before the measures are implemented.