Brazil to renew industrial tax breaks -govt sources

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. (Reporting by Natuza Nery and Isabel Versiani, Writing by Reese Ewing; Editing by Leslie Adler)