Customs at Punta de Piedras, Margarita Island, part of the National Integrated Customs and Tax Administration Service (SENIAT). Photo: Wilfredor.
Guacamaya, June 2, 2025. With an expected drop of up to 30% in oil revenues due to new U.S. sanctions, Nicolás Maduro’s government is tightening the screws on the private sector. Business leaders and experts warn this could worsen the country’s already fragile economy.
The U.S. sanctions have hit the oil industry hard, particularly after licenses for companies like U.S.-based Chevron were revoked. This has forced the government to seek alternative revenue streams, leading to increased tax collection efforts.
Some analysts believe the sanctions will reduce oil revenues to around $15 billion in 2024. To compensate, the government has implemented measures such as advance tax payments, hefty fines, and increased service fees, Reuters reported.
In April, Maduro declared an “economic state of emergency,” allowing him to eliminate certain tax exemptions. This follows a January order to double tax revenue compared to 2024, when $5.2 billion was collected. By the first quarter of 2025, revenue had already risen by 20%.
The government is pleased with these results. Pro-government lawmaker José Gregorio Vielma Mora told Reuters that the private sector has contributed significantly. However, business owners have a very different perspective. A survey showed that 77% of them view high taxes as their biggest challenge, and nearly 60% do not plan to increase production in the coming months.
Luis Bárcenas, an economist at Ecoanalítica, told Reuters that the government sees taxes as a quick way to generate cash and predicts revenue could reach $13 billion in 2025. He claims many businesses are now allocating up to 50% of their profits to taxes.
The labor situation also looks bleak. Many companies do not plan to hire more staff, and some mid-sized firms may even cut jobs. A business owner in the sector noted that without necessary capital, there will be no new hiring.
Additionally, the cost of public services has risen, with prices doubling over the past year. Inflation, which ended 2024 at 48%, could reach 200% by the end of 2025.
Some companies are feeling the strain of more complex local taxes and have closed underperforming stores. An anonymous source from a multinational company mentioned that the impact on local businesses is even harsher.
While the government condemns the sanctions as part of an “economic war,” some business leaders have met with officials to request changes in fiscal policy—though no clear results have emerged yet.
Thus, the tax burden has become a serious problem amid the economic crisis Venezuela has faced for years.
