The reform to Tax Law on Large Financial Transactions, approved on Thursday, February 3 in the second discussion by the National Assembly of 2020, it entered into force on Monday. According to experts, it will have a negative impact not only for companies, but also for individuals.
The norm establishes the collection of taxes of up to 20% in transactions with dollars and cryptocurrencies other than the petro, being established as follows:
1.- From 0 to 2% for almost all transactions with bolivars.
2.- From 2 to 8% for transactions within the banking system in currencies or cryptocurrencies that are not issued by the Central Bank of Venezuela.
3.- From 2 to 20% for transactions in currencies or cryptocurrencies not issued by the Central Bank of Venezuela without the mediation of financial institutions.
the digital medium Momentum contacted three economists who explained three key points regarding this lawwhich has been widely rejected by citizens and economic sectors of the country.
Will the cost of living go up?
The norm, assured the economist Edgar Urbáez to the digital media, makes no distinction between natural and legal persons. He added that the tax burden on transactions will fall on consumers and this will further raise the cost of living for Venezuelans.
“It will not contribute anything to lowering inflation, on which great expectations were woven following it had been lowered a little at the end of last year by improving some economic activities in the country,” he explained.
The Bolivar, cheaper than the dollar?
Pablo José Chirino, president of the Fedecamaras employer association, in his Lara section, said that with the law the Venezuelan government intends to make the bolivar cheaper compared to the US dollar. He warned that the business association made a series of observations to correct the law, but it seems that they were not taken into account.
“We are afraid that the rates may influence the cost structure of products that consumers will buy. The tax should be equal to the one in force with respect to the digital bolívar in percentage terms. For now the tax is 3%”, he pointed out.
Will the economy get worse?
The law prevents investments and prevents people from carrying out any type of paperworkwarned the specialist in commercial law Joel Rodríguez Ramos. He stressed that the Tax Unit has been unknown to pay in bolivars the taxes that were set in the petro cryptocurrency.
He also assured that the economic crisis will worsen because there will be more layoffs and that, therefore, more people will join the informal economy.
“If the income of the bulk of the population is miserable, how does the regime intend to recover the value of the bolivar when what it is doing is putting an unbearable weight on the population? Really, now, the economic situation will worsen”, affirmed the expert.
