World News

Brazil's Bolsonaro mulls flexible taxes for fuels - report

SAO PAULO (Reuters) - The far-right front-runner in Brazil’s presidential election, Jair Bolsonaro, intends to use flexible taxes for fuels as a way to avoid volatility in prices for consumers, newspaper Folha de S. Paulo reported on Thursday.

If the international fuel price is higher, a lower tax rate would be applied and vice-versa, controlling prices at the pump, Folha reported.

As a consequence, state-run oil company Petroleo Brasileiro SA would set fuel prices freely.

Bolsonaro was an early supporter of a truckers strike this year over rising diesel prices.

The candidate did not immediately respond to a Reuters request for comment on the report.

Reuters reported earlier this month that Bolsonaro’s advisers are deeply split over the future of Petrobras, foreshadowing a showdown over divestments and fuel subsidies.

Reporting by Carolina Mandl; Editing by Jeffrey Benkoe