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Brazil Raises Taxes by $7.5 Billion in Quest for Confidence

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Brazil’s government will raise taxes on fuel, imports, credit and cosmetics as part of efforts to restore confidence in its fiscal discipline, Finance Minister Joaquim Levy said.

The measures will increase revenue by more than 20 billion reais ($7.5 billion), he told reporters Monday in Brasilia after markets closed. As part of the new policy, Brazil will resume collection of the so-called Cide tax on fuel and raise taxes on loans to individuals and imports. President Dilma Rousseff also vetoed Tuesday a tax break on income tax approved by Congress that would cost the government about 7 billion reais.