Supreme Court dediaties judgment on oil royalites

Last Wednesday (4), the president of the Supreme Court (STF) Luiz Fux decided to postpone the trial of the action on the division of oil royalties, after the appeal of the acting governor of Rio de Janeiro Cláudio Castro (PSC). The session was scheduled for December 3, and until then there is no new date to take place.

The discussion regarding the distribution of commodity royalties comes since 2012, when the law that provides for the division of oil resources between states and municipalities was approved by Congress and sanctioned by then-President Dilma Roussef. The text reduced the share of royalties in producing states and municipalities to redivide these resources among all federal entities. Since 2013, the legislation is suspended by an injunction granted by Minister Carmen Lucia, at the request of Rio and Espírito Santo, major harmed.

The Government of Rio argues that royalties cannot be confused with taxes. In addition, the Constitution requires producing states and municipalities to receive compensation for the socio-environmental risks and impacts arising from oil production. With the postponement, states have more time to reach an agreement.


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