Venezuela imposes new tax on companies to finance pensions

The Parliament of Venezuelawith a Chavista majority, approved this Tuesday a new tax that will fall on companies to allocate it to the pension system pulverized by years of inflation.

“It is approved unanimously and is consequently declared sanctioned Law to Protect Social Security Pensions Against Imperialist Blockade and is sent to the national Executive for promulgation“said the parliamentary leader, Jorge Rodríguez.

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The law establishes that the “special contribution“companies”that carry out economic activities in the national territory, will be up to 15% (fifteen percent) of the total payments made to workers in the form of salaries and non-salary allowances.”.

The law, which is made up of 13 articles, further states that “The President of the Republic will annually establish the corresponding percentage of the special contribution, according to the type or class of economic activity.”.

Chavismo attributes the precariousness of the monthly subsidies allocated to the country’s more than 5 million pensioners to the effects generated by the financial sanctions that U.S unsuccessfully forced the president’s departure Nicolás Maduro.

“Pensions have been practically crushed under the weight of this economic aggression“, said the deputy Jesus Faria during the session in which the law was approved.

The law, which analysts see as an instrument that encourages fiscal voracity in the business sector, aims to “offer you the possibility of improving pensions, social security“said the parliamentarian in turn Diógenes Linares.

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Its approval comes in a context of freezing the minimum wage last increased in 2022, currently equivalent to less than 4 dollars and taken as a reference for the payment of pensions in Venezuela.

He “comprehensive minimum income”, as the official who will seek a third term in the July 28 elections called it, consists of a minimum wage of 3.50 dollars, around 40 dollars in food bonuses and now another 90 of the so-called “Economic War Title”.

Venezuela has been punished in recent years by chronic inflation – Maduro projected a 60% rise in prices for this year – and by the constant depreciation of the local currency displaced by an informal dollarization that marks most operations.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.