RIO DE JANEIRO Oct 15 Brazilian President
Michel Temer said on Saturday the government has no plans to
increase fuel taxes, a day after state-run oil company Petrobras
announced a drop in fuel prices.
Friday's price cut by Petroleo Brasileiro SA
marked a significant shift following years in which politically
driven pricing cost the company billions of dollars.
Temer's comments may dispel market speculation that
the government would seek to increase the CIDE fuel tax as a way
to make up for lost revenue.
"The CIDE, no," he told reporters during an official visit
to India. "There are no plans at this moment for that."
Temer, who replaced impeached President Dilma Rousseff
following her ouster in August for budget irregularities, said
any tax increase at present goes counter to efforts by the new
government to rein in public spending, particularly through a
proposed constitutional amendment that would cap expenditures.
"When we thought about a ceiling on public spending, we
thought precisely about avoiding any new type of tax," he said.
Despite the drop in oil prices worldwide in recent years,
Petrobras' cut was the first downward change in Brazilian fuel
prices since 2009. The new cut, in effect as of
Saturday, reduced prices for diesel by 2.7 percent and gasoline
by 3.2 percent.
(Reporting by Alexandre Caverni; Editing by Matthew Lewis)