Venezuelan government approves new tax for cryptocurrency and foreign currency transactions-

The Venezuelan government has approved a new tax that would affect transactions in foreign currency and cryptocurrency. The tax approved by the state's National Assembly, which is known as the "large financial transaction tax", would raise up to 20 % on transactions that are made in other currencies than the national Fiat currency or petro.

Venezuelan government taxes crypto transactions

The Venezolan government has approved A new tax that will affect transactions and payments with cryptocurrencies and foreign currencies. The tax, which is referred to as the "large financial transaction tax", is intended to create incentives for the use of the state currency, which has lost in an environment with several currencies such as this in importance Gift in Venezuela in recent years.

The tax stipulates that all transactions or payments in foreign currencies or cryptocurrencies without quantity limitation must pay up to 20 % per movement, depending on the type of movement and the company or people who carry out.

The percentage to be paid is determined by the national government after the official publication of the law, but in its first application it will collect 2.5 % to these payments.

recognized cryptocurrency volumes and reactions

The inclusion of cryptocurrencies in this law is recognition of the importance of this type of currency and volume, which is moved in the country in terms of transactions and payments. That is the opinion of Aaron Olmos, a national economist. However, the main objective of the law would be the taxation of transactions in dollars, which are estimated to make 65 % of the operations and payments in the country.

Jose Guerra, a Venezolan economist, believes that this will be a blow into the pocket of the Venezuelans who use foreign currencies and cryptocurrencies to keep their savings. About it, guerra specified

It must be recognized that the foreign exchange has solved part of the cash problems, value reserves and savings of everyone in the country. To a certain extent also crypto-assets. To make this decision tries to prefer a means of payment to another.

Another side effect of this law would be the incentive to create black markets in order to avoid payment of this law. to Oscar josé torrealba, Director of the Center for the spread of economic knowledge of the country. Torrealba explained that merchants and people would act outside of the law, which would be promoted by tax pressure.

What do you think of this new tax introduced by the Venezuelan government? Tell us in the comment area below.

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

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