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Brazil to hike taxes on beverages, raise $845m this year

Published on Apr 30, 2014 1:28 PM

BRAZIL-ECONOMY/TAXES BRASILIA, April 29 (Reuters) - The Brazilian government will raise taxes on beers, sodas and other beverages in a move that will raise an extra 1.5 billion reals (S$845 million) in revenue to help meet its elusive fiscal savings goal.

The tax agency said late on Tuesday that a new survey showed an increase in the average price of many cold beverages, which means the government can charge higher taxes on those products.

Earlier this month, the government had already announced a tax hike on beer to bolster fiscal accounts that have been hit hard over the last three years by rising subsidies, higher spending and an economic slowdown.

The rapid erosion of the country's finances led Standard & Poor's to cut Brazil's debt rating closer to junk status in March.

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