Venezuela might start using crypto for tax collecting

Venezuela might start using crypto for tax collecting
Written by:
Ali Raza
12th August, 07:40
  • Venezuela continues to push Petro usage by an agreement that the coin will be used for collecting taxes.
  • While the majority of its mayors agreed to this, 30 of them are opposed to the idea.
  • The move comes as part of the on-going campaign to promote greater Petro usage in the country.

Venezuela’s authorities have been pushing hard to promote the use of Petro, the country’s oil-backed cryptocurrency. However, despite hyperinflation that has been making life in the country incredibly difficult for years now, its citizens still refuse to switch to this particular coin.

Meanwhile, as time goes by, the country’s rulers continue to come up with more and more new methods of trying to enforce Petro use. The most recent idea is to start collecting taxes in Petro.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Paying taxes in Petro to become a new norm

According to recent reports, the Bolivarian Council of Mayors in Venezuela recently decided to sign the so-called ‘National Tax Harmonization Agreement.’ The agreement would make Petro the official means to collect payments of sanctions and taxes in all 305 municipalities in the nation.

The new campaigns are already making Petro used more than ever before, and chances are that this usage will continue to increase due to the new move.

From what is known, the country’s vice president, Delcy Rodriguez, will be tasked with implementing a single registry of taxpayers via a new digital consultation tool. On top of that, she will also have to work on creating a monitoring system and information exchange to assist companies that operate within the country.

Rodriguez claims that collecting taxes in crypto will make the procedure simpler and more efficient.

Venezuela still has Petro opponents

While small, Venezuela still has 335 mayors, in total. Around 30 of them are opposed to the regime of the country’s president, Nicolas Maduro, which makes 91% of the nation under the mandate of Maduro’s party, PSUV (UnitedSocialist Party of Venezuela).

Those who oppose the president’s regime will still continue to oppose Petro, as well. They will still collect taxes in the country’s national currency, Bolivar. In fact, some of them do not even have technical capabilities to switch to crypto.

As mentioned, this is only the latest move in a campaign that is pushing the usage of Petro. Previously, in June, the country’s government posted an announcement that nearly 15% of all fuel payments were made in Petro. This is also the largest use case for the coin, as around 40% of all Petro usage was within petrol stations.

Invezz uses cookies to provide you with a great user experience. By using Invezz, you accept our privacy policy.