Bolsonaro proposes lowering fuel taxes to combat high prices

The president of Brazil, Jair Bolsonaro, announced on Monday a set of proposals to reduce fuel taxes and try to reduce high prices, four months before the elections in which he will seek a second term.

Fuels have been the main driver of inflation, which accumulated 12.13% in the 12 months to April and is considered the biggest obstacle for the far-right president, who is second in the polls.

"We know what is happening with fuel, a problem that everyone suffers from, especially the most humble," Bolsonaro said at a press conference in Brasilia with his economic team and the presidents of the Senate and the House of Representatives. Deputies.

Among the Executive's proposals - subject to negotiations with the National Congress and regional governments - is the reduction of federal taxes and compensation for governors to reduce their local taxes.

"If the problem is the loss of revenue [from regional governments], we pay the bill!" the president tweeted shortly after the announcement.

Without going into details, Economy Minister Paulo Guedes told reporters that this could cost the government "between 25 billion and 50 billion reais" (up to $10.4 billion).

The government's proposal is subject to the approval of a bill that is already being processed in Congress and a constitutional amendment that requires three-fifths of the votes in both chambers and that has not yet been presented.

In the 12 months through April, fuels rose 33.24%.