Newswire

Brazil to extend auto industry tax breaks-source

BRASILIA, March 27 (Reuters) - Brazil's government will announce in the coming days the extension of tax breaks for the automobile industry that were set to expire next week, a source at the presidential palace said on Friday.

The government slashed industrial taxes on new cars in December in a bid to prop up sales and prevent massive layoffs as demand for automobiles plunged because of a credit crunch.

(Reporting by Natuza Nery, Writing by Elzio Barreto)