Venezuela’s Maduro imposes 9% tax for pensions

Venezuela’s President Nicolas Maduro has decreed to charge companies 9 per cent of the total amount paid to employees to finance the pensions, Bloomberg reported.

However, the decree offers an exemption of up to one year for companies registered in national registry.

Maduro’s administration aims to capitalise on a revived dollarised economy, following years of crisis, to redistribute some wealth to Venezuelans dependent on pensions paid in bolivars.

However, the Venezuelan business group Fedecamaras has criticised the plan, stating that it further burdens an already struggling private sector grappling with a complex tax structure.