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Say NO to subsidies to the fossil industry

We do not accept the robbery of the public safes to favor the activities of the oil companies in Brazil! We ask for consistency and responsibility during the vote on Provisional Measure 795/2017, so that it is not approved. This special tax regime entails a lot of disadvantages not only for the country's economy, but mainly for the Brazilians. In addition, the measure is contrary to the commitments made by the Brazilian government to combat global warming.

On August 17th, President Michel Temer issued a Provisional Measure establishing a special tax regime for the exploration, development and production of oil, natural gas and other fluid hydrocarbons. This means more tax incentives for oil companies during their activities in Brazil and to strengthen the oil and gas sector, that most pollutes the planet.

Basically, this Provisional Measure exempts companies from various taxes during the exploration of Brazilian natural resources. Thanks to the tax exemption, studies show a loss of 40 billion Reals per year, or 1 trillion Reals in 25 years, only with the blocks sold in the last pre-salt auctions.

Provisional Measure 795/2017 has already been approved in the Joint Committee of the National Congress and now awaits decision of the Plenary of the Chamber of Deputies. For not to lose its validity, it must be approved or rejected by the Senate until December 15th.

While the Provisional Measure is on the agenda, other facts show the contradictory - and problematics - priorities of the government:

COP 23: While the United Nations Climate Change Conference happens in Bonn, Germany, Brazilian national policies, such as Provisional Measure 795/2017, have done exactly the opposite of what was envisaged in the Paris Agreement. Instead of proposing actions to reduce emissions of greenhouse gases, the Brazilian government is increasingly providing incentives for the fossil fuel industry to continue to explore oil, gas and coal in our lands - which will only make our situation worse, since we already occupy the seventh place in the ranking of the biggest polluters in the world.

Renewable energies do not have this fiscal incentive: if we still want to meet the targets set in the Paris Accord, to reduce emissions by 30% by 2020, the government needs to quickly review policies for the energy sector. By 2016, national greenhouse gas emissions have risen by 9% compared to 2015 - it is the highest level since 2008. We need to immediately begin the transition to clean, fair and renewable energy sources for all. A great first step would be this type of tax incentive for the renewable energy market.

Fossil fuel is not synonymous with development: the increase in emissions occurs in the midst of the worst recession in Brazilian history. In 2015 and 2016, the cumulative increase in emissions was 12.3%, against a fall of 7.4 points in GDP (Gross Domestic Product). So, Brazil becomes the only big economy in the world to increase pollution without generating wealth for its society.

Budget cuts: Important Brazilian ministries are receiving cuts, such as the Ministry of the Environment, which in 2018 will have 50% less resources. In an interview with GLOBO, Everton Lucero, Secretary for Climate Change and Forests of the Ministry of the Environment, said that it will not be possible to fund all climate initiatives with public resources.

Rising gas prices in Brazil: If we have more oil being explored in the country, the gas will get cheaper, right? Wrong! The consumer continues to pay dearly.

Reduction of the minimum salary: how can it approve a Provisional Measure that reduces the collection of taxes of large companies - can reach zero - and at the same time decrease the minimum salary of Brazilians? Detail: the population continues to pay their taxes.

Increase in electricity and gas bills: the light bill in Brazil will be more expensive in November. The Electric System Monitoring Committee decided to keep the operation of thermals more expensive, despite an improvement in the expectation of rainfall in November - proof of this is the Itaipu hydroelectric plant opening its floodgates to drain the surplus water in its reservoirs! Cooking gas will also get more expensive, because the high international prices.

It can not be just coincidence. The government puts in place measures to reduce its own budgets and increase population taxes, but does not abandon the incentives to the dirty fossil fuel industry. And Brazilian citizens will be the ones to pay this bill! We can not allow a cent, even worst a trillion, to get out of our pockets for oil companies to continue to exploit.

What can you do to prevent MP 795/2017 from being converted into law?

  • Sign and share the petition for the Senate.

#Not1Cent

We do not accept the robbery of the public safes to favor the activities of the oil companies in Brazil! We ask for consistency and responsibility during the vote on Provisional Measure 795/2017, so that it is not approved. This special tax regime entails a lot of disadvantages not only for the country's economy, but mainly for the Brazilians. In addition, the measure is contrary to the commitments made by the Brazilian government to combat global warming.

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