Government to temporarily reduce excise tax on gasoline

SANTIAGO.-  President Michelle Bachelet announced a reduction on the gasoline excise tax this morning.  The temporary initiative comes with a group of other economic measures announced this morning by the government.  Plans to permanently eliminate the duty on stamps for small and medium businesses was also announced. 

According to the Minister of Finance, Andrés Velasco, tax reduction calls for a 6 to 4.5 UTM tax cut per cubic meter of fuel for a period of 24 months.  While in affect, the initiative will allow consumers to enjoy a reduction of approximately $50 pesos per liter of gasoline. 

Velasco stated that the measures will be passed by way of an urgent law project to be sent to Congress during the next few days.

The government also announced plans to establish a special policy to develop bio-fuels and encourage the purchase of vehicles with low emission levels.