In addition to the Direct Action for Declaration of Unconstitutionality filed by the State Governor of Rio de Janeiro, other four lawsuits of similar tenor have been filed, standing out among them one suit filed by the Governor of the Espírito Santo ´s state.
ALERJ, the State Legislature of the Rio de Janeiro State, temporarily removed from its voting docket the vote relative to the overturning of the Governor ´s veto to the legislative bill that institutes a fee in the amount of 4 fiscal units of reference (UFIR-RJ, a statutory inflation-adjustment index) currently equivalent to R$9,00, which if approved, will be levied on each oil barrel produced in the State. This project aims at offsetting eventual losses in revenue the state may suffer should the new royalties distribution comes into effect.
A constitutional amendment bill (PEC 45/2013) that determines the ICMS levy on the production of oil at its origin has also been presented at ALERJ . The purpose of the bill is to also offset the tax losses the State may suffer should the new distribution of royalties law not be revoked.
Some Brazilian congressmen are also discussing the possibility of a new agreement between the producing and non-producing states. Among the thesis under discussion stands out the creation of a regime of gradual progression of the royalties´ tax rates due to the states and municipalities, until once ended an agreed period, the tax rates be those established in Law no. 12.734 of 2012. It is being considered that such a transition period be of 10 years.
Other congressmen are negotiating the Federal Government´s possibility to anticipate future revenues of royalties from the non-producing entities. The amounts passed on would be offset in future years, when future production contracts are signed. This negotiation is quite complex because is based on the thesis that in the existing contracts the distribution of royalties are not altered.
Governors from other non-producing states are negotiating the new distribution rule introduced by Law no. 12.734 of 2012 not altering the existing contracts, in other words, in conformity with President Dilma ´s veto which has been overturned by the Congress. On the other hand, the aforementioned governors propose that the Federal Government anticipates resources to their States, which is currently being refused by the Presidency of Republic.
The Congress is already working to change the Federal Constitution in a response to the decision of the Supreme Court ´s justice, who granted the provisional measure to the action filed by the Rio de Janeiro ´s Governor, which suspended application of the new tax rates of distribution of the oil royalties.
The Brazilian congressmen are also working in the sense of drafting a bill to the constitutional amendment proposal (PEC) altering all distribution of the royalties derived from the oil exploration offshore, including areas already bid and those of the sub-salt. Should the Constitutional Amendment Proposal be approved, the judgments of the ADINs on the Law no. 12.734 of 2012 will lose relevance. Many congressmen demonstrated their interest in supporting this constitutional amendment proposal (PEC).
In Rio de Janeiro, the Governor had determined the suspension of payments due by the State on account of the overturning of the President Dilma´ s vetoes to the new Royalties Law. With the granting of the provisional measure requested by the ADIN filed by the Governor the payments have already been regularized.