Deputy rules out higher VAT rate and introduction of bank debit tax
The Venezuelan Parliament is to delve into the sale of US dollars via the extinct Transaction System for Foreign Currency Denominated Securities (Sitme)
In his statement, Sanguino also ruled out any increase in the value added tax rate and the application of further taxes, such as the bank debit tax.
Early this week, Venezuelan Vice-President Nicolás Maduro stressed that the Government would take economic steps, including a reform on the Food Law and other moves related to the regulations of the Labor Law. Maduro did not hint any other actions.
Sanguino ruled out any immediate change in some of the current taxes, yet he underscored that the Finance Ministry and the Parliament are working on a fiscal reform.
He stated, "There is an ad hoc team of the (Finance) Ministry working on different areas of the fiscal policy. A report will be produced sooner than later."
Asked whether the reform included a revision of current taxes and the inclusion of new ones, Sanguino said, "Economic policies are not rigid. They are designed and implemented, then evaluated, and later you adopt new ones or keep those currently enforced."
Moreover, Sanguino explained that the fiscal reform will extend to public expenditure and outlined that government spending efficiency would be tested. "It is compelling to be more efficient in the management of the processes." The idea is assessing the execution of ordinary expenditure as well as the National Development Fund and the Chinese Fund.
Sanguino added that the Parliament is to delve into the sale of US dollars via the extinct Transaction System for Foreign Currency Denominated Securities (Sitme) to find out whether the money has been properly used by entrepreneurs.
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.