March 8, 2021

The Chavista Constituent approves a tax on the great patrimonies in Venezuela

The National Constituent Assembly (ANC), made up of militants of Chavismo, approved the creation of a tax on large estates in Venezuela, which will charge up to 1.5% of natural persons with more than 250,000 euros ($ 282,500) of assets already companies whose assets total more than 650,000 euros (734,500 dollars).

This "law to the great patrimonies" consists in that "the one that has more pay, and the one that has less does not pay", wielded the constituent Andrés Eloy Méndez.

And he explained that the "constitutional law" establishes that the persons and companies considered in this category pay "progressively" from "0.25% to 1.5% of the total assets" declared.

The bill was approved "en bloc" by the plenary, that is, the proposal was not evaluated article by article.

According to Méndez, in article one of the law, in the case of natural persons, "subjects of great patrimony" are considered "those who have more than 36 million tax units without including the main dwelling", an equivalent figure to 250,000 euros ($ 282,500) in assets.

While, with the companies, the tax would be charged to those "exceeding 100 million tax units" in assets, an amount equivalent to 650,000 euros ($ 734,500), a segment that would, according to Méndez, "2% of the legal entities that bill and have assets close to 90% of the entire country ".

"Not that many pay, is that few who have much pay a lot, because they stole a few of them," he said and said that "after those gentlemen were enriched by the economic war," now "will pay taxes" .

In any case, he pointed out that "small and medium-sized industrialists can feel at peace with this."

Méndez, who chairs the economy commission of the ANC, argued that "the increase in non-oil revenues" is "one of the ways to address the fiscal deficit," which he attributed to what the Government of Nicolás Maduro calls "economic war." "

Despite this new tariff, Méndez said, "Venezuela continues to be the country with the lowest tax burden in this continent" and warned that the objective is to "dismantle" regressive taxes such as the Value Added Tax, which in the country is of 16% currently.

According to the National Integrated Customs and Tax Administration Service (Seniat), between January and June 2019 it collected 4.33 trillion bolivares (equivalent to 643.33 million dollars at the rate of 6,738.41 bolivars per dollar).

Of the total collected in the first semester, the Seniat charged 787 billion bolivars (equivalent to 116.83 million dollars at the rate of 6,738.41 bolivars per dollar) for VAT.

(tagsToTranslate) Constituent (t) chavista (t) tax (t) patrimonios (t) Venezuela

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