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Venezuela Plotting to Levy Taxes Through Oil-Backed Petro Cryptocurrency

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The Bolivarian Council of Mayors in Venezuela agreed to sign the “National Tax Harmonization Agreement” which incorporates oil-backed petro cryptocurrency as a means to raise taxes and sanctions. The new move has led to broader adoption and use of the state-issued cryptocurrency.

The government has also revealed that the Vice President of Venezuela, Delcy Rodríguez, will oversee the execution of a single taxable person registry through a digital consultation tool. In addition, she will supervise the creation of a data tracking and exchange network for firms to record tax payments through the oil-backed petro cryptocurrency.

Some municipal governments lack means to collect taxes in petro cryptocurrency

Notably, the South American nation has a total of 335 mayors in which more than 90 percent are under the United Socialist Party of Venezuela, led by President Nicolas Maduro. Only 30 mayors are under the opposition regime in Venezuela. The municipal governments led by anti-Maduro mayors are still levying taxes in the Venezuelan domestic currency, Bolivar. Most of these municipalities do not possess the necessary technology to collect taxes in petro cryptocurrency.

Commenting on the new move, the vice president stated:

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

Maduro still pushing for greater petro adoption

According to sources, Venezuela’s government recently revealed more than 15 percent of all fuel payments; petro cryptocurrency is used to settle at gas stations in the South American nations. The government has introduced subsidies for every person who pays at petrol stations using the state-issued token. In addition, a Ultimas Noticias report suggests that 40 percent of petro transactions went through petrol stations overseas.

Over the past few years, Venezuela has undergone severe inflation that has resulted in economic distress. The government introduced the petro cryptocurrency, backed by oil mined in the country, to counter hyperinflation. Back then, the cryptocurrency market was at its pinnacle, however, the country is facing severe trade sanctions on allegations of corruption within its government. The head of the state-backed crypto was recently listed on the FBI’s most-wanted list.

Venezuela Crypto Head Added to Most Wanted List by US Customs Authorities

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The United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations office based in New York city announced on June 1 that it had included Venezuela crypto head to its most persons list.

According to the ICE, the superintendent to Venezuela’s cryptocurrency,  Joselit de la Trinidad Ramirez Camacho is cited to have  “having deep political, social, and economic ties to multiple alleged narcotics kingpins,” which includes Tareck EI Aissami. The Venezuela crypto head is being charged for allegedly infringing the International Emergency Economic Powers Act, the Kingpin Act, on top of several other policies.

$5 million bounty placed on Venezuela crypto head 

Moreover, the United States authorities have placed a hefty $ million bounty on any information that may lead to the arrest of the Venezuela crypto head. Camocho is the current premier of Venezuela’s cryptocurrency, heading the country’s oil backed Petro digital currency.

Particularly, Venezuela developed its own digital currency backed by the country’s oil reserves back in 2018 to combat the high inflation rate amid international sanctions by the United States. Indeed, the South American nation’s government even went to the extent of forcing its citizens to use the oil-backed cryptocurrency.

US Department of Justice accuses Venezuela President of Narco-terrorism

If arrested, the Venezuela cryptocurrency superintendent will be sent to the United States and charged in the Southern District of New York. Back in May, New York district attorney Geoffrey Berman, accused Ramirez Camacho of participating in a corrupt class of top Venezuelan officials which includes the country’s president Nicolas Maduro.

According to the attorney, the group is operating a; “narco-terrorism partnership” intent on flooding “the United States with cocaine in order to undermine the health and wellbeing of our nation. Additionally, Berman claimed that Maduro and 14 other high-profile government officials such as Padrino Lopez, Diosdado Cabello, Tareck El Aissami; among others run the narco-terrorism operations; and a series of rewards have been announced for information leading to their capture.