Brazil raises taxes on gasoline and ethanol

In Brazil, the federal government raised gasoline, diesel and ethanol taxes to raise money to lower their deficit down to R$139 billion (about USD$44 billion) by the end of this year. The gasoline tax was increased from R$0.3816 (USD$.12) to R$0.7925 (USD$.25) per liter and for diesel fuel from R$0.2480 (USD$.07) to R$0.4615 (USD$.15) per liter at refineries. For ethanol, the tax rate increased from R$0.12 (USD$.038) to R$0.1309 (USD$.041) for the producer, and R$0.1494 (USD$.047) per liter for the distributors.

The Brazilian fuel industry was upset about the fuel tax hike and said it would delay economic recovery instead of spurring it and hurt citizens who are already suffering due to the recession and high unemployment rates.

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