Venezuela Imposing New Oil Extraction Tax

CARACAS, Venezuela – President Hugo Chavez said Sunday that Venezuela would impose a new tax on companies that extract oil from the country to increase revenues from its petroleum industry.

Venezuelan Oil Minister Rafael Ramirez said the government was considering a 33.3 percent extraction tax. Oil companies would be able to detract whatever they pay in royalties from tax bills, he told Union Radio.

Chavez, who made the announcement during his weekly television and radio program, said the measure would create $1 billion in new revenue. He said details of the new tax would be revealed in coming days.

“We are going to create a new oil tax, called the tax on extraction,” Chavez said. “The companies that are pumping oil in Venezuela are making a lot of money.”

AP