Brazil's President Michel Temer said Friday that the government has no plans to raise taxes in order to meet its yearly fiscal target.

"There is no plan. For the time being, our economic team is just looking at this increase (announced Thursday)," Temer told reporters during a meeting of the South American trade bloc Mercosur, Reuters reported. "I don't know if there will be a need for more later, but not now."

Business leaders in Brazil spoke out against a tax hike, arguing that such a move would be the wrong way to go in order to restore fiscal balance because it would hurt Brazil's recovery from its worst recession in 100 years.

"Their reaction is natural; nobody wants more taxes. But I am sure this will pass when they understand that meeting the fiscal target is fundamental for the country's stability and encouraging growth," Temer said, Reuters added.

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