Lula’s Finance Minister Fernando Haddad has long opposed the waiver, arguing privately that it hurts public coffers and undermines Lula’s green agenda, according to two sources from the ministry who requested anonymity to speak candidly. Publicly, Haddad has said ultimately it would be up to Lula to decide.
“The decision (to extend the tax waiver only to February) was taken by the president, who, obviously, can revisit the matter,” he said after a January meeting with Febraban, the lobbying group representing Brazilian banks.
Others in Lula’s circle have convinced the president to extend the waiver on diesel and biodiesel until December of this year, and on gasoline and ethanol until February.
Tensions are now mounting over whether to extend further the gasoline and ethanol tax waiver.
In his fiscal plan, presented in January, Haddad included the reintroduction of taxes on gasoline and ethanol starting in March. That would generate 29 billion…
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