Tax revision suggested upon Venezuelan entry into Mercosur
Domestic reduction of parafiscal contributions is regarded as critical
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.
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."