RIO DE JANEIRO, BRAZIL - The Planalto Palace has decided to increase the value of Brazil aid (survival assistance for the poorest) to R$ 600 (US$115) by the end of this year. In exchange, President Jair Bolsonaro's (PL) government would give up compensating states that zero the state-level VAT rate (ICMS) on diesel and gas.
The measure to extend the aid by R$200 is expected to reach voters more quickly, something Jair Bolsonaro desperately needs for the October election. The ICMS compensation would depend on the governors and could be complicated by possible adjustments by Petrobras.
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