IBP Statement - Regulation of Habitual Tax Debtors
The Brazilian Petroleum, Gas and Biofuels Institute (IBP) welcomes the regulation of the law establishing the legal framework for identifying habitual tax debtors, published on Friday (June 27). The measure represents a significant institutional advancement for the integrity of Brazil’s fuel market, as it establishes clear criteria to distinguish occasional taxpayers facing temporary financial difficulties from those who systematically use tax delinquency as an illicit business strategy. For IBP, this is a fundamental step toward combating unfair competition that drains billions of reais from public revenues and harms companies that operate in full compliance with the law.
At a time marked by supply chain challenges and international market volatility, strengthening the formal market is essential to ensuring Brazil’s energy security. The regulation of habitual tax debtors not only protects public finances but also promotes a more predictable and ethical business environment, enabling fuel distributors to focus on operational efficiency and meeting society’s energy needs.
IBP reiterates its commitment to integrity across the sector and will continue to work closely with regulatory and enforcement authorities to ensure that the implementation of the new framework results in a fairer, more transparent, and more competitive market for all Brazilians.
