Alexandre Silveira’s call for the oil giant to set an example to other companies with outstanding tax debts comes as President Luiz Inacio da Silva’s administration seeks to cut deals with them in an effort to raise revenues and balance the nation’s budget.
A potential agreement with Petroleo Brasileiro SA, as the company is formally known, could bring in 30 billion to 40 billion reais to public coffers, helping narrow Brazil’s budget gap even as Lula plans to further increase public spending. Petrobras disputes the idea of ongoing negotiations about back taxes. Asked whether Prates and Haddad had talked about the topic, a spokesperson referred to an Aug. 15 statement where the company maintains that “news of a possible negotiation for a deal with the federal government is unfounded.” In the statement, the oil producer says its decisions on tax liabilities take into account risks of negative rulings in administrative and judicial spheres.