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Brazil Government Cuts Gas Tax

February 3rd, 2010 · No Comments · Brazil Economy

The Brazil government has announced a temporary cut in gasoline taxes for three months in order to aid the Brazil economy according to Bloomberg.

The move is designed to squash inflation in the Brazil economy and stabilize prices after refineries cut the percentage of ethanol used in Brazilian gas because of a decline in ethanol stockpiles.

It is expected that the reduction in gas taxes will have no impact on any interest rates decision by the Brazil central bank.

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