Venezuela’s Executive Vice President Delcy Rodríguez, President Nicolás Maduro, and Minister of Economy and Finance Anabel Pereira at the National Council of Productive Economy on Friday, March 28. Photo: Ministry of Economy and Finance.
Guacamaya, March 28, 2025. Nicolás Maduro announced on Friday that municipal taxes on primary production will be suspended.
The measure will take effect starting Monday, March 31, at 7:00 a.m., as stated by the Venezuelan president during the National Council of Productive Economy.
Although no further details have been specified, sectors such as agriculture, livestock, mining, and hydrocarbon extraction will likely be exempt. It is important to note that this measure only affects taxes levied by municipal governments.
Municipalities have increased their taxes amid the country’s economic crisis to compensate for the lack of revenue from the central government. However, this adds additional costs in a country already bearing the highest tax burden in Latin America.
According to Ecoanalítica, the effective tax rate on operating profits for formal businesses in Venezuela is 60%. In Brazil, it is 34%, and in Colombia, 32%, while the regional average is 29%.
Maduro has repeatedly stated his intention to promote exports and import substitution over the past year. However, few changes have been made to the legal framework and bureaucracy.
Maduro Speaks on the Parallel Dollar—”War Dollar”
This week, the parallel dollar surged above Bs 100, while the official rate remains around Bs 69 per dollar. Among other factors, this spike follows U.S. President Donald Trump’s threat to impose tariffs on all countries purchasing Venezuelan oil.
Maduro asserted that the central bank’s rate “is not the official dollar because we don’t set it; it’s a market rate.” He then added, “Anyone who loves Venezuela must not encourage the parallel dollar in any way. Respect the market dollar.”
The president ordered Executive Vice President Delcy Rodríguez and the board of the Central Bank of Venezuela (BCV) to establish “new technological mechanisms for the development and interaction of Venezuela’s foreign exchange market, ensuring the defense of the market dollar […] Venezuela has the foreign currency reserves to overcome this disruption and move forward.”
On Monday, Maduro also stated that a ton of gold bullion was being delivered to the BCV’s reserves. The institution claims to hold international reserves worth $10 billion.
