Seven people alleged to be criminal enablers of Russian oligarchs could land three decades in the U.S. jail over charges of using shell companies and virtual assets to evade global sanctions.
To protect the bolivar, the government is reportedly going after digital currency users, imposing a 20% tax on BTC transactions to curb its growing usage for payments in the South American country.
After years of experimenting with the controversial Petro digital currency, Venezuela is now set to launch the digital bolivar, the country’s version of a central bank digital currency.
President Nicolas Maduro recently told Venezuelans that his government is working on a digital bolivar, promising a big surprise announcement soon.
The government announced recently that the Bolivarian Council of Mayors has signed the National Tax Harmonization Agreement. The Agreement calls for the implantation of a new information exchange and monitoring system for companies that will allow them to pay taxes in Petro.
Of the 335 municipalities in the country, 305 voted in favor of the agreement, according to the government. At total of 30 municipalities voted against the Agreement, choosing to keep collecting the taxes in fiat. The opponents also pointed out the lack of technology infrastructure in most of the municipalities which will make it difficult for the local governments to collect taxes if the new bill is passed.
Venezuela Vice President Delcy Rodriguez will be in charge of the new tax mechanism. She will implement a single registry of taxpayers through a digital consultation tool, the announcement stated.
Commenting on the proposed new system, Rodriguez said, “It is the simplification of procedures, making the State's administrative activity at the service of the people more efficient, of the economic sectors that stimulate economic activity in the productive and commercial areas, framed in this week of flexibility that began on Monday.”
The mayors expressed their support for the new mechanism, describing the signing as a historic event. Vargas Mayor José Alejandro Teran said the use of a digital payments system would allow the municipalities to fight induced inflation. It would also ensure the local governments avoid double taxation which is common with the existing fiat system.
Nicolas Maduro’s government has continued to push for the use of the Petro digital currency. In June, the president ordered all gas stations to accept Petro payments. In the past, he has also ordered that public employees receive their Christmas bonus in Petro, with pensioners also being forced to accept the digital currency.
The government’s push has done little to attract the citizens, however. As CoinGeek reported, Venezuelans have been trying desperately to get rid of Petro, with some selling it on P2P platforms at half its price. The merchants have also refused to accept payments in the currency." title="Venezuela to accept taxes in Petro" />
The National Tax Harmonization Agreement will implement an information exchange and monitoring system for companies that will allow them to pay taxes in Petro.
The government has started requiring all gas stations in Venezuela to sell petrol at a discount in exchange for Petro.
U.S authorities have placed a $5 million bounty on Joselit Ramirez, the head of Venezuela’s digital currency agency.
Merchants in Venezuela are refusing to accept payments in Petro crypto, claiming that exchanging the Petros for bolivars is difficult and leads to huge losses.
Venezuelans are desperate to rid of the Petro crypto recently airdropped to them by the gov’t and are now selling it on P2P marketplaces for half the price.
President Maduro has ordered all airlines operating from the capital Caracas to pay for fuel in the petro crypto as he looks to boost its uptake in Venezuela.