Venezuela’s President Nicolás Maduro introduced a 9% tax on private companies to bolster the country’s pension fund.
This tax, calculated on the total amount paid to employees, includes both salaries and non-salary bonuses.
The goal is to address the challenges faced by Venezuela’s pension system, weakened by years of economic crisis and international sanctions.
This new measure follows a law approved by the government-controlled National Assembly, which permits a tax of up to 15%.
The tax takes effect immediately, as outlined in the decree published on May 16.
Companies registered in a national registry may receive up to a one-year exemption from this tax.
The initiative aims to leverage Venezuela’s recent economic stabilization, partly due to a dollarized economy.
The government seeks to ensure a better distribution of wealth to pensioners, whose payments are made in bolivars.
This currency has significantly depreciated. Currently, around 5 million Venezuelans receive pensions.
Moreover, 22.6% of the economically active population works in the private sector.
However, the business community, represented by Fedecámaras, has voiced concerns.
They argue that this new tax adds to an already complex tax structure, potentially burdening the private sector further.
Critics highlight that the tax could increase operational costs, making it harder for businesses to remain profitable and competitive.
Venezuela Imposes 9% Tax on Businesses to Fund Pensions
The government justifies the new tax as necessary to restore the welfare state and counteract the adverse effects of international sanctions.
President of the National Assembly, Jorge Rodríguez, emphasized that these measures aim to recover economic stability and social welfare, diminished by external pressures.
As the government implements this tax, businesses will need to adapt to the new financial requirements.
They must navigate Venezuela’s challenging economic landscape, balancing additional tax burdens with the need to maintain operations.
More: Venezuela news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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