Brazil's Rio de Janeiro State Plans to Withdraw New Oil, Gas Taxes
Brazil's Rio de Janeiro state plans to withdraw new taxes on oil and gas production before they take effect in March on concern the tax will hurt an already weak industry, a source involved in talks told Reuters on Friday.
The tax, passed by the Rio de Janeiro state legislature last year in an effort to ease a growing financial crisis, immediately came under attack from industry leaders worried the levies would hit as oil prices fall to decade lows.
The source, who asked for anonymity because talks about ending the tax are secret, said the governor and his cabinet have not yet chosen the legal justification they will use to block the tax law.
(Reporting by Rodrigo Viga Gaier; Writing by Jeb Blount)
