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Brazil’s Congress Approves First Proposal to Curb Fuel Prices

  • Proposal caps a state tax and scraps federal taxes on fuel
  • Bolsonaro’s popularity hurt by inflation ahead of election
President Jair Bolsonaro
President Jair BolsonaroPhotographer: Andressa Anholete/Bloomberg
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Brazil’s congress approved the first of three proposals to curb soaring fuel prices that are hurting President Jair Bolsonaro’s popularity ahead of October’s election.

The bill that caps at 17% to 18% a state tax known as ICMS on fuel, electricity, public transportation and telecommunications was approved in a 307-1 vote on Wednesday morning and can now be signed into law by Bolsonaro. Lawmakers had already backed the proposal on Tuesday by a wider margin, but lower house Speaker Arthur Lira repeated the process after a technical problem interrupted the session late last night.