Venezuela Mulls Tax Payments in Its Controversial Petro Cryptocurrency
Officials in Venezuela are mulling the payment of citizen taxes using the Petro cryptocurrency despite criticisms of it not being backed by a public blockchain, as per local reports Tuesday.
Taxes Paid in Crypto Coming to Venezuela
The Bolivarian Council of Bolivarian Mayors and Mayors signed this Sunday the National Tax Harmonization Agreement in 305 municipalities of the country, placing the sovereign cryptoasset El Petro as the unit of account for the payment of taxes and sanctions, in order to protect the productive sector and the Venezuelan people from “distorted prices.”
The President of the Republic, Nicolás Maduro Moros, said that he supports the signing of this agreement, adding he hopes it would fare well for all municipalities to favor the economy and development, in order to achieve the necessary income for the action of the municipalities in the states.
The consortium announced they will levy steps to ensure no citizen is taxed twice as a result of using the Petro, and in fiat.
Rodríguez, the vice president of Venezuela, classified this agreement as “historic,” adding it was achieved after unified efforts of the mayors and the ruling of the Constitutional Chamber of the TSJ.
The vice president explained that a single registry of municipal taxpayers will be created, which will function as a digital tool for consultation, information exchange and monitoring of companies with branches in different municipalities, to verify any declaration presented in one Mayor’s Office as declared and paid in another. to avoid double taxation of the industrial sector.
It could also be used later as an instrument for crossing information with the national tax system. This unique registry will be created and administered by the Bolivarian Council of Mayors and Mayors, the report noted.
Meanwhile, Rodriguez further commented:
“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.”
Petro Remains Controversial
The announcement comes a month after the Venezuelan government said almost 15% of all fuel payments at petrol stations across the country were made using the Petro (PTR). It marked the widespread use of its cryptocurrency.
As BTCManager reported earlier, the members of the Venezuelan assembly had declared the national cryptocurrency is illegal under the laws of the country. They believe that the move by the President and his cabinet to issue a state-owned cryptocurrency is further proof of the administration’s ineptitude and a glaring reminder of the sorry state of affairs within the country.
The group also faulted plans by the government to make businesses and retirement accounts to accept the petro.