Government and National Assembly discuss fiscal reform
Deputy Ricardo Sanguino said the proposals are being evaluated
One week ago, Venezuelan Minister of Planning and Finance Jorge Giordani urged one more time the National Assembly (AN) "to undertake an in-depth fiscal reform. Those who earn more will have to pay more." Hence, the chair of the AN Finance Committee, Ricardo Sanguino, announced they are already working on such reform.
"We are evaluating the best proposal to conduct the fiscal reform. We are taking a look at the effective tax laws and other laws that may be added so as to obtain funds from those who earn more. This does not mean income is insufficient. We are just making an assessment. We have not made any decision about the right timing," Sanguino elaborated.
The congressman did not list the new taxes. When requested whether they would take into account the taxes proposed in the Socialist Plan 2007-2013, he answered, "We are considering all the alternatives."
The government plan includes a fiscal reform providing for income tax progressivity -Higher income people should pay higher taxes- and a revision on the Value Added Tax (VAT).
It also provides for a new tax on the appreciation of immovable property, public works for default; a tax on luxury goods; a tax on the use of luxury services; and a tax on production-oriented facilities & equipment in use without any justification.
Translated by Jhean Cabrera
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.