Venezuela Plans to Collect Taxes in Crypto

The Bolivarian Council of Mayors in Venezuela signed an agreement to mandate collecting taxes in the state’s crypto Petro for 305 municipalities in the country.

12 August 2020 | AtoZ Markets – Venezuelan fiat currency, Bolivar, has lost most of its value over the last few years. Choosing cryptocurrencies in Venezuela instead of Bolivar is just one of the survival strategies. However, despite hyperinflation and making life in an incredibly difficult country for years, its citizens still refuse to accept crypto as a payment method.

Venezuela Moving to Accept Taxes in Petro

The Bolivarian Council of Mayors in Venezuela has recently decided to sign the “National Tax Harmonization Agreement” for expanding the adoption of Petro. The agreement makes Petro (PTR), national crypto as a means of collecting tax and sanction payments in Venezuela.

Out of a total of 335 municipal representatives, 305 mayors are voting for a new crypto-tax collection mechanism. The rest do not have sufficient technology to handle it, so they will collect taxes in fiat. New campaigns are already making Petro more used, and this usage is likely to continue to grow.

Venezuela’s Vice President, Delcy Rodriguez, will be responsible for implementing a single register of taxpayers through digital consultation tools. She will also be in charge of exchanging information and building corporate surveillance systems to record payments in state cryptocurrencies. Vice President Rodríguez said:

“It is the simplification of procedures, making the State’s administrative activity at the service of the people more efficient, of the economic sectors. It stimulates economic activity in the productive and commercial areas, framed in this week of flexibility that began on Monday.”

Recently, BTC payments for passport applications in Venezuela had been disabled. However, the citizen could still pay for passport applications with Petro. Expert says, it is Venezuela’s strategy to avoid economic sanctions on crypto.

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