Brazil's Guedes asked staff to reconsider tax cut on steel rebar -industry group

SAO PAULO, May 10 (Reuters) - Brazilian Economy Minister Paulo Guedes asked his team to reconsider a tax cut on steel rebar, Aco Brasil, the agency that represents the sector, said on Tuesday, adding that a decision on the matter is expected on Wednesday.

Reuters reported on Monday, citing a source familiar with the matter, that the government was studying removing import tariffs on 11 products, including steel, to help cool down consumer prices.

Aco Brasil explained at a press conference on Tuesday that the government was considering reducing the steel rebar import tax to 4% from 10.8% and that the measure would be reconsidered after a meeting between steel makers and Guedes.

The agency's president, Marcos Eduardo Faraco, who is also an executive at Gerdau (GGB), said a decision on the tax cut is expected on Wednesday.

"The expectation is that the government will not welcome the plea (for the tax reduction) and will reverse this measure," he said. (Reporting by Alberto Alerigi Jr.; Editing by Leslie Adler and Sandra Maler)