Jair Bolsonaro has caved in to truckers and announced tax exemption for diesel and gasoline

The President of Brazil, Jair Bolsonaro, yielded to pressure from the truckers union, which threatened a general shutdown due to rising fuel prices, and announced on Thursday a two-month tariff exemption from the federal tax on diesel and gasoline.

“As of March 1, there will be no federal tax on diesel. Over the next two months, we will be looking at a definitive way to eliminate this tax to help offset this excessive increase by (state oil company) Petrobras, ”Bolsonaro said.

While defending Petrobras’ autonomy and reaffirming that the government cannot intervene in the state, The president criticized the company for increasing fuels, mainly diesel, and said changes need to be presented and that “something is going to happen” at the largest company in the country, but without giving details.

Three federal taxes applied to fuels correspond to the 9% of the price, while 14% more are billed by states.

Two weeks ago there was a threat of a general strike in Brazil by truckers, a union that supported the head of state in the elections he won in 2018, the year in which there was a strike across the country to protest against rising fuel prices, tolls , taxes and freight.

Just this thursday Brazilian Association of Motor Vehicle Drivers (Abrava) issued a statement asking Bolsonaro to keep the promise not to let the price of diesel rise excessively by Petrobras.

Bolsonaro also announced an exemption from federal taxes on domestic gasoline, which is 3% of the total value of the pipette, which has an average value of ninety reais (about $ 18), of which, according to the president, more than half is the distribution and tax rates of States.

“There are external factors. When the winter is excessive, there is a greater consumption of gas and fuels and with the higher demand, the prices increase. Saudi Arabia is there to increase its production and that could lower the price of oil, ”the leader said.

For the head of state, “the dollar is high. You have to get off and how do you get back down? With structural reforms to awaken investor security. God willing, we calm the market, the dollar goes down and fuel goes down ”.

(With information from EFE)

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