Venezuelans reportedly hit by new Bitcoin tax of up to 20%

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According to local reports, the Venezuelan government has approved a new tax bill that aims to collect up to 20% in taxes on cryptocurrency transactions.

Venezuela’s National Assembly held its second session Thursday for a new bill on taxes on “large financial transactions” in cryptocurrencies such as Bitcoin (BTC).

Last Thursday, the Venezuelan government reportedly approved a bill requiring local businesses and individuals to pay up to 20% for transactions made in cryptocurrency, as well as in foreign currencies and US dollars.

The bill, introduced on January 20, proposes charging a fee of 2-20% on transactions in currencies other than those issued by the Bolivarian Republic of Venezuela, or the Venezuelan bolivar and the country’s oil-backed cryptocurrency, El Petro.

The initiative aims to encourage the use of the national currency, which has reportedly lost more than 70% of its value in the past year alone and has lost almost all of its value over the past decade.

“It is necessary to ensure at least equal or more favorable treatment of payments and transactions made in the national currency, cryptocurrencies or cryptocurrencies issued by the Bolivarian Republic of Venezuela compared to payments made in foreign currencies,” the bill says.

Related: India to impose 30% Cryptocurrency tax, CBDC digital rupee by 2022-23

As previously reported by Cointelegraph, the rate of bitcoin adoption in Venezuela has skyrocketed in recent years, as several thousand local businesses have begun switching to cryptocurrencies to survive hyperinflation. In October 2021, a major international airport in Venezuela was preparing to start accepting cryptocurrencies such as BTC as payment for tickets and other services.

Source: CoinTelegraph

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