Brazil issues fuel tax hike

The Brazilian government has announced an increase in fuel tax to raise revenues and meet this year's fiscal target of R$ 139 billion, reports The Rio Times.

The tax rate for gasoline will increase from R$0.3816 to R$0.7925 per liter; diesel fuel from R$0.2480 to R$0.4615 per liter; and ethanol from R$0.12 to R$0.1309.

Rates may vary depending on how much the gas stations will pass on to the consumer, according to a report by plus55.com.

The decision to increase fuel tax was brought about by weak revenues and recession, according to Brazil's Finance Minister Henrique Meirelles.

But for critics, raising taxes will only worsen the situation in the country plagued by unemployment and sluggish economy.