Sudeban: No new financial transaction tax in sight

Monday, August 2, 2004

The Venezuelan banking regulator (Sudeban) Trino Alcides Díaz denied that the government is planning to implement a tax on financial transactions, the country's state news agency Venpres reported.

In the form of taxes on financial transactions, there only exists the 0.5% debit tax, the regulator added.

"Moreover, the government is looking to reactivate the economy and for this reason lowered value-added tax (VAT) from 16% to 15% and ordered the tax on company assets to be eliminated," Díaz said.

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The regulator's comments follow a statement from the currency exchange commission head Edgar Hernández Behrens saying that the tax on financial transactions is being studied.

There were no details given by Hernández concerning the tax, but other Latin American governments have levied a similar tax in order to boost public funds.

Both Peru and Bolivia have recently implemented similar taxes that effect all financial transactions from savings accounts and credit cards to remittances sent from abroad.