Venezuela is set to ramp up taxes after the US imposed sanctions on the beleaguered South American country last month.
The sanctions were explained by the US government as a response to a failure by the incumbent government to live up to commitments made to the opposition in 2023, in preparation for an election later this year.
These strictures required US companies to seek licences from the US government to operate in Venezuela. This is likely to impact the latter’s drive to increase oil output.
With an election looming, the government intends to use state spending as a sweetener to voters.
To rake in the money, private firms were being subjected to audits with fines and penalties following. Efforts were being made to bring more companies into the tax space, and existing contributions were being asked to pay their obligations early.