ANNOUNCEMENT 28 Jan 2013

In January 2013, the government of Venezuela announced a change to the import-specific domestic duties.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Bloomberg, 28 January 2013: http://www.bloomberg.com/news/2013-01-28/venezuela-to-pump-more-dollars-into-economy-cut-tax-on-oil-1-.html

EY Tax Alert of 18 March 2013: tmagazine.ey.com/wp-content/uploads/2013/05/2013G_CM3273_Venezuelan-reform-to-Hydrocarbons-Law-increases-threshold-of-contribution.pdf

Ley de Reforma Parcial del Decreto no. 8.807, published in Official Gazette no. 40.114 of 20 February 2013 (in Spanish): http://www.tsj.gov.ve/gaceta/febrero/2022013/2022013-3644.pdf#page=2


Inception date: 20 Feb 2013 | Removal date: open ended

Internal taxation of imports

On 28 January 2013, the government announced that it plans to reduce levies on the oil industry by changing rules on the so-called windfall tax that will now only be triggered when crude and its derivatives trade above USD 80 a barrel, instead of USD 70 a barrel. The purpose of this change is to channel foreign currency from a domestic development fund to the Venezuelan Central Bank in order to provide currency for additional imports.
 
The windfall oil price tax establishes a special contribution which is payable by companies exporting certain hydrocarbons including liquid hydrocarbons, both natural and upgraded, and their derivatives. The tax revenues are than collected in a domestic development fund.
 
The measure was effective on 20 February 2013 with the publication of the according law in the Official Gazette.

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