UPDATE 1-Brazil to renew industrial tax breaks -govt sources

* Industrial tax breaks renewed for six more months

* Taxes to rise in Oct, but remain below pre-crisis levels (Adds details, background)

By Natuza Nery and Isabel Versiani

BRASILIA, June 26 (Reuters) - The Brazilian government plans to announce on Monday that it will renew a key tax break for the automobile, home appliance and construction industries as part of a broad push to pull the economy out of recession, two government sources told Reuters on Friday.

The industrial tax exemption for the auto industry will remain at current levels for the next three months and then rise slightly in October, but not back to pre-crisis levels, the sources said on condition of anonymity.

The reduction of the so-called IPI industrial tax has allowed automakers and home appliance retailers to lower prices to keep sales going during the current economic downturn.

In an interview with Reuters on June 10, President Luiz Inacio Lula da Silva had said he supported making the industrial tax break for the auto industry permanent. But some members of his economic team, wary of giving up a steady source of tax revenue, oppose a permanent exemption.

The reduction of the IPI tax has been a lifeline for Brazil's four big automakers: Italy's Fiat SpA (FIA.MI), Germany's Volkswagen AG (VOWG.DE), General Motors Corp GMGMQ.PK and Ford Motor Co (F.N).

Domestic consumption in the sector has been resilient in the face of the crisis, with the tax break bringing showroom prices down by about 10 percent.