Vinicius Doria      Reporter Agência Brasil

Brasília – Yesterday, the minister of Finance, Guido Mantega, announced a series of measures to boost sales in the auto industry. Taxes, such as the IPI, on manufactured goods, and the IOF, on financial transactions, will be reduced. The reductions will remain in effect until August, resulting in a total revenue loss of R$1.9 billion for the government (R$1 billion from lower IPI and R$900 million from the IOF during that period – with the IOF reduction to be extended for an indefinite period).

According to Mantega, the industry will offer counterpart reductions in prices. The automakers have also promised not to lay off workers.

Allen Bennett translator/editor The News in English - content modified

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