A federal appeals court in the Brazilian capital of Brasília on Wednesday re-instated a hike in fuel taxes ordered by the government earlier in July. The court said the tax hike was constitutional and within the government’s powers. Earlier this week, a lower court judge suspended the tax hike via a temporary injunction. The government ordered the hike as part of a drive to meet 2017 budget goals. The federal government faces a yawning deficit this year unless it can cut spending and raise more revenue. The hike in fuel taxes is designed to bring in additional revenues in 2017 of R$10.4 billion.
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