Since 2016, large banking transactions in local currency, the bolivar, pay a tax, and now the authorities would seek that operations made with foreign currency within local banks also pay taxes, added the consulted parliamentarians. The tax rate that would be imposed has not been detailed.
Transactions with cash dollars have increased in Venezuela since the president Nicolas Maduro The controls on the economy will be more flexible in 2019 and the banks keep foreign currency banknotes in their vaults offering custody services and open accounts in foreign currency, with permission from the authorities, which are used by companies and individuals.
US sanctions prevent international transfers to and from Venezuela, which has experienced four years of hyperinflation and a long economic recession.
Last year the executive vice president, Delcy Rodríguez, announced that a tax on foreign currency transactions was being contemplated and last week she consigned the legal reform to Parliament, without giving details.
“Operations with accounts in foreign currency within the same bank would be pechadas (they would pay tax),” said the official deputy Ramón Lobo, who added that the review of the legal framework will remain until the beginning of 2022.
Due to the exchange regulations that still continue, no foreign currency transfers are made between local entities.
As indicated by the deputies, if, for example, a company has an account in foreign currency in one entity and pays a supplier in foreign currency in another account within that same bank, it would cancel the tax for the operation.
The use of currencies in Venezuela is increasing. More than half of the purchase operations in stores are carried out in dollars, according to local firms. The government also makes part of its payments to suppliers in foreign currency to spend less in bolivars and control prices, which have slowed since May.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
