SAO PAULO: Brazil's government announced that gasoline taxes will be temporarily scrapped, two weeks ahead of the runoff election between incumbent President Luiz Inacio Lula da Silva and right-wing challenger Flavio Bolsonaro. Lula, who is seeking his fourth term, is trying to contain rising fuel prices amid a global spike in oil prices driven by the war in the Middle East. The gasoline tax, which was set at 0.89 reais ($0.18) per litre, would be waived for 30 days, according to the government.
The measure announced on Friday also expands subsidies for importers of diesel, the predominant fuel used in Brazil's freight transport. "The objective is to ensure that imports remain viable at a critical moment for supply," the presidency said in a statement. The fiscal impact of the tax exemptions will be offset by Brazil's "extraordinary revenues" from oil exports, it said.
The runoff election on October 25 was set after Lula won 45 per cent of the vote in the first round and Bolsonaro received 47 per cent. Bolsonaro called his opponent "irresponsible," warning that Lula was placing a "bomb" on consumers' laps and that diesel prices could rise after the election. — AFP
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