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

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

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According to local reports, the Venezuelan government has adopted a new tax bill that aims to collect up to 20% in taxes from bitcoin transactions.

On Thursday, the National Assembly of Venezuela convened its second hearing on a new draught measure. That would impose taxes on “large financial transactions” in cryptocurrencies such as Bitcoin (BTC).

Last Thursday, the Venezuelan government reportedly passed a draught bill. Mandating local businesses and individuals to pay up to 20% in fees for transactions involving cryptocurrencies. As well as foreign currencies such as the US dollar.

The draught bill, which was filed on January 20, proposes to collect between 2% and 20% of transactions in any currency other than the Venezuelan bolivar and El Petro, the country’s oil-backed cryptocurrency.

The project tries to encourage people to utilise the national currency. Which has lost nearly all of its value in the last decade. And has lost over 70% of its value last year alone.

“Those and transactions done in the national currency or in cryptocurrencies or crypto assets issued by the Bolivarian Republic of Venezuela must get a treatment that is at least equivalent to, if not more advantageous, than payments made in foreign currency,” the measure states.

As previously reported, Bitcoin usage has exploded in Venezuela in recent years. With tens of thousands of local businesses turning to bitcoin to stay afloat in the face of hyperinflation. In October 2021, a major international airport in Venezuela planned to begin taking Bitcoin. As well as other cryptocurrencies as payment for tickets and other services.

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