Fuel tax cut to lower the price of gasoline today

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SANTIAGO.- A law aimed at boosting economic growth and development was published in the Diario Oficial today.  The decree includes a temporary slash to the excise tax on fuel.

On Friday of last week, the measure was approved by President Michelle Bachelet, who announced that the measure would be put into effect today – prompting a $36 peso drop in gas prices.

The plan includes a temporary reduction in the excise tax on gasoline, from 4.5 UTM per cubic meter to 3.5 UTM. The cut will be effective from the first day of the month following the approval, until April of 2010.

Additionally, the measure calls for the permanent elimination of the tax on electronic transfers, ATM withdrawals, checks and checking account transfers.