Brazil’s government on Thursday announced a series of cuts in tax credits in order to help compensate for reductions in levies over diesel fuel. The cuts in diesel fuel taxes, amounting to about R$4 billion, were offered to Brazilian truckers as a way to end a disruptive truck strike this week. The Finance Ministry on Thursday said it will reduce an export tax reimbursement rate, under the REINTEGRA program, from 2% to just 0.1%. The measure will result in additional revenues of R$2.27 billion. The ministry announced an end to a tax abatement program, known as REIQ, for the chemicals industry amounting to R$170 million in revenues. The government will reduce tax credits for soft drinks producers from 20% to 4% for additional revenues of R$740 million.
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