Problems relating to Trade and Investment on Venezuela
24. Indigested legislation, abrupt changes |
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Issue |
Issue details |
Requests |
Reference |
| (1) Abrupt Changes in Legislative Schemes | - Since 2012, National Assembly adopted the "Enabling Law," which empowers President Hugo Chavez to enact and amend laws in the manner favourable to the President and Government on a broad range of issues without sufficient legislative debate or approval. - No sufficient time is allowed, following the law amendments. Law amendments made without reference to the old laws and phenomena compel extraneous workload and expenses upon the interested parties. |
- It is requested that GOV takes steps to conduct prior consultation with all relevant parties (including interested parties). | - Presidential "Enabling Law" |
| (Action) - On 30 December 2015, President Nicolas Maduro introduced amended Income Tax Law and high value financial transaction tax right before the lapse of Enabling Law. The Amended Income Tax Law raises from 34% to 40% the corporate income tax of financial institutions, while amending the timing of entry for the revenue from provision of assets/services from the time of payment to the time transaction is concluded, and non-application of inflationary adjustment on special tax payers and financial institutions. |
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| (2) Unprepared Legislative Systems | - While GOV decides its policy, substantive implementing details remain undefined and unexecuted. As a result, everything comes to a standstill. | ||
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