Tax revision suggested upon Venezuelan entry into Mercosur

Venezuelan entry into the Common Market of the South (Mercosur) implies the adaptation of a set of regulations and conditions so as to match those from the other members of the bloc. Taxes are in the list of relevant changes to help develop domestic production, encourage exports, and participate within the group both as an importing and an exporting country.

Roberta Núñez, KPMG's attorney at law, reports that the private sector has suggested a serious tax revision so as "to secure investors and natural persons' purchasing power." Today, Venezuelan companies are subject to a large number of parafiscal contributions, an issue that has become a major concern in recent years. 

This issue affects not only entrepreneurs but also consumers as goods and services prices sore. "These charges slash the private sector, but especially individuals as prices go up due to the fiscal impact."

Núñez added that two suggestions have been put forward on this issue: harmonizing fiscal obligations for the purpose of mitigating the impact, and eliminating such obligations.

"It is been suggested that there is no need for harmonizing unwanted contributions within the tax system; this has been globally proved. I suggest adopting a more efficient and appealing system able to be accepted by investors and individuals, and able to set the ground for entering new commercial alliances within the framework of the entry (of Venezuela) into Mercosur" Nuñez said.