Petrobras Agrees to Pay $3.5 Billion in Back Taxes to Support Brazilian Budget
Amid President Luiz Inácio Lula da Silva’s efforts to balance Brazil’s budget, Petrobras has committed to settling $3.5 billion in outstanding taxes with the federal government. The move, approved by the company’s board of directors under new CEO Magda Chambriard, aims to bolster Finance Minister Fernando Haddad’s push to eliminate the nation’s primary fiscal deficit.
The settlement, expected to relieve Petrobras of legal burdens and reduce potential penalties, will be funded by pre-existing judicial deposits and tax credits. The company plans to make an initial payment of 3.750 billion reais by June 30, followed by six installments.
This contribution is part of the government’s strategy to increase revenue and reduce the deficit, which has prompted calls for public spending cuts. Petrobras may also consider further payments to support fiscal plans throughout the year, with the majority of these funds benefiting the government as the controlling shareholder.
Stay tuned for more updates on Petrobras and Brazil’s economic developments.