Venezuela Waiving All Taxes on Profits from PDVSA

(Energy Analytics Institute, Piero Stewart, 7.Aug2018) – Aside from wasting paper, more importantly, the recent Gaceta Oficial in Venezuela also has a decree from President Nicolas Maduro waiving all taxes on profits from state oil company PDVSA and the joint ventures for all of 2018.

Interestingly, the decree seeks to boost foreign investment in the oil sector and to “restore hydrocarbon production levels,” writes Caracas Capital Markets Managing Partner Russ Dallen in an emailed note to clients. This is not the first admission of failure to be revealed in the Gaceta Oficial you hold in your hands, he added.

“For those still entertaining thoughts that Venezuela was actually paying its debts and U.S. sanctions were holding the money up, we got this subdued understatement of Venezuela’s “decreased capacity to pay its international commitments” in the preambular material of the Constituent Assembly decree attempting to mind-meld the bolivar, petro and oil barrel price (relevant portion underlined in red),” wrote Dallen.

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Author: ENERGY ANALYTICS INSTITUTE (EAI)

Energy Analytics Institute (EAI) is a Houston-based independent think-tank providing unbiased research, analysis, commentaries, opinions and breaking news related to the petroleum sectors in the Latin American and Caribbean regions.

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