Productive Sector Launches Manifesto for Overturning Veto on Selective Tax Exemption for Mineral Exports
A coalition of industry associations warns parliamentarians about the legal and economic errors of taxing the export of mineral goods and argues that Brazil cannot export taxes.
BRASÍLIA, June 11, 2025 – Leading Brazilian industry entities, represented by the Brazilian Petroleum and Gas Institute (IBP), Brazilian Mining Institute (IBRAM), Federation of Industries of the State of Rio de Janeiro (Firjan), Federation of Industries of Espírito Santo (FINDES), Federation of Industries of the State of Pará (FIEPA), and other sector associations, delivered on Wednesday (June 10) during a dinner with parliamentarians in Brasília a manifesto opposing the maintenance of Presidential Veto No. 7/2025 (Item 07.25.023), which concerns the Selective Tax on the export of extracted minerals. The document, signed by multiple industry associations, highlights the serious legal and economic risks if mineral exports were to be taxed.
The manifesto emphasizes that the veto represents a “serious legal mistake,” as the Federal Constitution provides for the non-incidence of the Selective Tax on exports, based on the destination principle – meaning consumption taxes apply only to goods consumed domestically. Attempting to tax the extraction of minerals destined for export is seen as a direct violation of the Constitution and a step backward that makes Brazilian products less competitive in the global market. The sector stresses that this measure goes against international trade policy, which avoids exporting taxes, and could result in billions of dollars in lost business to other countries.
The associations further highlight that taxing the export of minerals undermines public investments, threatens national energy security, and impacts future revenues and the attractiveness of Brazilian assets. Iron ore, for example, is a key input for the global energy transition, and discouraging its export would be counterproductive.
In this context, the signatory entities—including IBP, IBRAM, Firjan, FINDES, Abrasca, ABESPetro, Abpip, FIEPA, and Ompetro—call on parliamentarians to support overturning the veto to protect the country’s economy and competitiveness.
The manifesto notes that petroleum and iron ore are pillars of Brazilian exports and contribute to the trade balance surplus. The associations urge parliamentarians to act to overturn the veto, avoiding a “serious mistake against the country’s economy.”
Signatories of the manifesto:
- Brazilian Association of Publicly Held Companies – Abrasca
- Brazilian Association of Petroleum Goods and Services Companies – ABESPetro
- Brazilian Association of Independent Petroleum Producers – Abpip
- Federation of Industries of Espírito Santo – FINDES
- Federation of Industries of the State of Pará – FIEPA
- Federation of Industries of the State of Rio de Janeiro – Firjan
- Brazilian Mining Institute – IBRAM
- Brazilian Petroleum and Gas Institute – IBP
- Organization of Petroleum-Producing Municipalities – Ompetro
