Brazil Govt Deducts $662 Million from Subsidies and Cuts Gas Taxes
The Brazilian government signed a decree reducing fuel tax rates for gasoline and eliminating ethanol contributions, while announcing a subsidy to lower diesel costs.
On Wednesday, the Brazilian government announced a new measure designed to counter rising international oil prices. The administration signed a decree that reduced PIS/Pasep and Cofins contribution rates on gasoline by 63 cents per liter and zeroed out contributions on hydrated ethanol. Additionally, the plan includes a subsidy of $1.00 per liter for diesel in its initial phase. This financial support remains subject to future adjustments or interruptions by the Ministry of Finance based on market conditions. These actions replace and expand upon previous subsidies under Temporary Measure 1,358, which offered a rate of $0.44 per liter for gasoline. The validity of the former measure concluded on Wednesday itself. Officials from the Treasury, Planning, and Mines and Energy ministries will provide further details through a press interview scheduled for 5:30 PM local time.
