The Venezuelan government has started to raise taxes and public service fees for private businesses because U.S. sanctions have reduced the country’s oil revenue. The new measures will worsen the difficulties faced by private businesses according to expert predictions.
Reuters
The U.S. government revoked essential licenses for PDVSA partners and customers including Chevron which resulted in a 30% decrease of Venezuelan oil revenue in February. The government has implemented multiple financial measures including tax advance payments and increased audits and substantial fines and expanded local authority fee collection powers.
President Nicolas Maduro declared an economic emergency in April which allowed the government to remove all tax exemptions. The first quarter tax revenue increased by 20% but business leaders indicate that working capital has become more challenging.
The May survey conducted by Conindustria revealed that 77% of businesspeople identified tax burdens as their main operational challenge while 60% of respondents indicated they would not increase production during the upcoming months.
