Venezuelan Government Orders Reduction in Electronic Payment Taxes

 The Venezuelan government announced Tuesday a two percent reduction in value added taxes paid in electronic transactions as part of an initiative to encourage less physical currency use.

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Venezuelan Communications Minister Ernesto Villegas made the announcement on Tuesday. (Archive)
Venezuelan Communications Minister Ernesto Villegas made the announcement on Tuesday. (Archive)
By Jeanette Charles
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El Progreso, December 15, 2016 (venezuelanalysis.com) - The Venezuelan government announced Tuesday a two percent reduction in value added taxes paid in electronic transactions as part of an initiative to encourage less physical currency use.

“As a stimulus for electronic banking operations use, the SENIAT and the Superintendency of Banks were instructed to immediately fix a 2% reduction in Value Added Tax for purchases made electronically through bank cards or electronic transfers," declared Communications Minister Ernesto Villegas.  

On Sunday, President Maduro issued an executive order removing the 100 bolivar banknote from circulation in a bid to clamp down on speculation on the nation's currency. 

Villegas confirmed that in recent days state security forces “have recuperated great sums of money in the form of 100 bolivar bills that were in the hands of the mafias.” 

Villegas indicated that all of the money recuperated will be earmarked for the Local Provision and Production Committees (CLAPs), a newly founded initiative between the state and community councils to distribute subsidized food directly to Venezuelan communities.

President Maduro also announced the creation of three new financial savings accounts with a 10 per cent interest rate in monthly savings. These new banking options will be available to the public for “savings deposits of up to 200,000 bolivars for 30, 60 and 90 day terms, free of banking commissions or any other contractual expenses.”

"With these actions the Bolivarian Government seeks to strengthen the conditions of our economy to overcome the negative effects caused by the criminal onslaught against our currency, orchestrated from the United States and Colombia, in connection with the parasitic bourgeoisie and its internal political allies,” continued Villegas. 

Likewise, Maduro requested that the country's financial regulatory body, the SUDEBAN, take actions aimed at simplifying the procedures necessary for the opening of bank accounts. 

According to SUDEBAN Director Leoncio Guerra, the only requirement for opening a bank account will be a laminated identification card.   

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