Temer says understands contrary response to tax rise from industry

In a statement made Friday (Jul 1), president Michel Temer said he understands the response of the industrial sector contrary to the increase in taxes on fuels announced by the economic staff. “No one wants taxes,” Temer said, adding that the move is key to keeping the country's growth and sticking to the fiscal target.

Temer answered the questions posed by journalists on the statement made by the São Paulo State Industry Federation (FIESP) criticizing the measure and arguing that raising taxes will aggravate the crisis at a moment when the economic activity is showing signs of recovery.

“It's a natural economic reaction; no one wants taxes. When everybody understands that it is key to stimulating growth and sticking to the fiscal target in a bid to provide the country with stability and not take any measure that may be fanciful or deceitful towards the people, this issue will soon be overcome,” he said during an interview after the plenary Mercosur Summit session in Mendoza, Argentina.

Other rises are out of the question, Temer added. “I'm not sure whether there is need for another rise. There will be more dialog and observation in that respect, but not now.”

Translated by Fabrício Ferreira