RIO DE JANEIRO, May 29 (Xinhua) -- The Brazilian government said Tuesday that it was not considering a tax hike to pay for diesel price cut that aimed to end a nationwide strike by truck drivers.
"President (Michel) Temer is not considering a tax hike," said Eliseu Padilha, chief of staff of the Brazilian presidency, after a cabinet meeting.
The government is considering reviewing fiscal benefits granted to some sectors as part of a package of compensation measures, which will be announced soon, Padilha said.
Truckers have been staging a massive protest for nine days in Brazil, which has paralyzed many sectors in the country, demanding a drop in fuel prices.
Although the government announced on Sunday a decision to cut the diesel price by 0.46 real (0.001 dollar) per liter, or about 13 percent of the current price, and to suspend two taxes on fuel, the truckers have not decided to end the strike.
On Monday, Finance Minister Eduardo Guardia said the government considered the possibility of a tax hike to compensate the loss from the diesel price cut, causing uproar in the country.
Guardia said later that the government was no longer considering a tax hike as an option. Meanwhile, Speaker of the House of Representatives Rodrigo Maia said the Congress will not approve any tax hike to compensate the fall in diesel prices.
