Fedecámaras: Gov't may cut prices for political reasons

The prices of 19 items whose prices were frozen last November by the Venezuelan Executive Office will be revised down for political reasons, according to the Federation of Trade and Industry Chamber (Fedecámaras).

"We believe that prices will be cut for political reasons," Jorge Botti, the president of Fedecámaras said.

Although no official announcement has been made on new prices, Botti added that "according to a leak," the government would approve a 10% to 15% cut in the price of some items, depending on the product.

"After a two-month price freeze, and accusations against the private sector that the prices of those items were higher than in other countries in the region, it is obvious that a cut in price may be approved," the business leader reiterated.

Last Thursday, Venezuela's President Hugo Chávez said that the prices of the 19 products will be lowered.

Chávez complained that businessmen charge income tax and Value Added Tax and add them to the price of products.

Meanwhile, Botti said that "economic logic" forces entrepreneurs to include some taxes as expenses.

The president of Venezuela's main business association also urged people to participate in the primary elections of opposition umbrella group Unified Democratic Panel (MUD) to be held on February 12. "We would also call upon people to participate if it was a primary election of the ruling party," Botti added.