Increased taxes and service charges in Venezuela, putting pressure on the private sector

World World: Venezuela’s government is raising taxes and public service fees on the private sector to compensate for falling oil revenues following US sanctions. Business leaders and analysts say this will put further pressure on the already struggling private sector.

In February, Washington revoked some key licenses for partners and customers of state oil company PDVSA, affecting Venezuela’s oil exports. Oil revenues, which are estimated to be around $15 billion in 2024, could fall by about 30%, according to analysts.

As a result, the government has started demanding advance tax payments, conducting more audits, and allowing local authorities and public service providers to raise their fees. This will put further pressure on the private sector, which is already struggling with the economic crisis, high inflation and currency controls.

According to the survey, 77% of businessmen cited taxes as the biggest obstacle to their activities, while about 60% do not plan to increase production in the future. Analysts believe that increased collection of taxes is proving to be a lifesaver for the government, but it is also putting additional pressure on local companies.