A debate has broken out among senior aides to Brazilian President Luiz Inacio Lula da Silva over fuel taxes, underlining the competing views within his circle over the future path of his nascent leftist administration.
Tensions are now mounting over whether to extend further the gasoline and ethanol tax waiver.on gasoline and ethanol starting in March. That would generate 29 billion reais in federal revenue and add fiscal backing to Lula's social spending plans.
In a series of Twitter posts, Congresswoman Gleisi Hoffmann, president of Lula's Workers Party , said fuel taxes should only resume once state-run oil giant Petrobras"This will be possible starting April when the Board of Directors is renewed with people committed to the reconstruction of the company and its role for the country," she said.
The Finance Ministry and the Presidential Palace did not immediately respond to requests for comments.
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