Export Tax on Road Diesel
The Brazilian Petroleum, Gas and Biofuels Institute (IBP) emphasizes that it sought clarification from the relevant authorities regarding the application of the 50% export tax on diesel fuel established under Article 12 of Provisional Measure No. 1,340/2026. The provision made a generic reference to “diesel fuel” classified under NCM code 2710.19.21, creating uncertainty as to whether it would also apply to marine diesel (“ODM”), which follows a markedly different commercial logic and tax treatment from road diesel.
IBP notes that the recent Provisional Measure No. 1,349, dated April 7, brought important clarification regarding the scope of the export tax on diesel fuel by making clear that the tax applies only to road diesel. This clarification is consistent with the spirit of Provisional Measure No. 1,340, whose Article 1 expressly limited its scope to “road diesel.”[1]
Indeed, marine diesel used to supply long-haul vessels bound for foreign destinations is considered fuel intended for export under Clause One of ICMS Agreements No. 12/75 and No. 55/21.[2] In this regard, Article 15 of Provisional Measure No. 1,349 amended Article 12 of Provisional Measure No. 1,340 specifically to make explicit that the tax applies to road diesel only.
IBP understands that this improvement in the wording of the regulation is essential to provide greater legal certainty, preventing interpretations that could improperly extend the tax to marine fuel operations and thereby create undue impacts on maritime supply chains and the operation of vessels engaged in foreign trade that use ODM fuel.
- [1] Article 1 – “The Federal Government is authorized to grant an economic subsidy for the commercialization of road diesel in the national territory, in the form of equalization of part of the costs borne by diesel producers and importers, in the amount of BRL 0.32 (thirty-two centavos) per liter, effective from March 12, 2026, until December 31, 2026, subject to the provisions of Article 2.”
- [2] Clause One – “For the fiscal purposes provided for in current legislation, the supply of products intended for onboard use or consumption in vessels or aircraft operating exclusively in international traffic shall be treated as an export.”
