Maduro Seeks to Tax Businesses for His New State Pension Fund
(Bloomberg) — Venezuela’s government is proposing a tax on private businesses as high as 15% of their paid wages for the creation of a state pension fund.
Under the draft bill presented by Vice President Delcy Rodríguez on Thursday, the contributions would be paid into the public system and deducted from income tax. Some strategic sectors will be exempt, according to a draft seen by Bloomberg, without specifying which.
The proposed bill tests newly reestablished ties between the Nicolás Maduro’s government and the private sector, battered by years of punishing price controls and expropriations.
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After years of economic crisis and out-of-control inflation, Venezuela’s government moved to allow the use of the dollar, prompting some economic growth. Still, progress has been uneven, particularly for the more than 5 million Venezuelans who struggle with stagnated pensions paid out in bolivars.
Under the law, pensions should not be less than minimum wage, which amounts to less than $4 before bonuses and food stamps of an equivalent $130 per month.
A government press official did not immediately respond to requests seeking comment.
Venezuelan business group Fedecamaras said the plan would add an additional burden to the private sector “on top of the already complex taxing structure entrepreneurs have to face,” in a Thursday statement.
–With assistance from Nicolle Yapur.
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