Venezuela Will Start Collecting Taxes In Cryptocurrency Soon

Venezuela will start collecting taxes in cryptocurrencies, more specifically in the national cryptocurrency Petro, after signing a new tax agreement. At the same time, the Bitcoin P2P trading volume reached a fresh all-time high as we are reading more in the upcoming altcoin news.

The Bolivarian Council of Mayors in Venezuela signed a new tax agreement in 305 municipalities across the country. The National Tax Harmonization Agreement will allow the nation to raise the taxes and sanctions that use the nation’s cryptocurrency- The Petro. According to the recent reports, the mayor of the Libertador Bolivarian Municipality signed the document after the presidential pass on behalf of the council of Mayors. The Venezuelan President Nicolas Maduro appointed the Executive Vice President Delcy Rodriguez to “guarantee that the harmonization of taxes is maintained in order to avoid double taxation.

Rodriguez will be responsible for developing a new platform and a monitoring system for companies that prefer paying taxes in Petro. She noted that the historic document is possible thanks to the mayor’s’ efforts who sat on the table with the national economic team under the direction of the Minister of Industries and the National Production, Tareck El Aissami, and how they reached this important agreement.

It’s worth noting that while the bill has approved the Petro is a legal way to collect taxes, it prohibited the tax collection in foreign crypto. Jose Alejandro Teran, the mayor of Vargas, explained that there are a lot of benefits that could result from the new agreement. He noted that having a combined digital resource for municipal taxpayers will allow the country to “strengthen the national taxpaying process and to give stability to inter-municipal informational systems.”

Teran asserted that by including Petro as a unit of account for collecting taxes and fees, is an innovative element that will enhance protection against induced hyperinflation. It’s also worth noting that the state-owned cryptocurrency comes with a few controversial implications. Petro was launched a few years back and despite the government officials claiming that people are utilizing it all the time, some reports show the opposite. Petro saw some more-real time use cases after its launch including an airdrop to doctors during the COVID-19 pandemic.

Venezuela will start collecting taxes in crypto just as the US government added the person behind the cryptocurrency as a most-wanted fugitive Joselit Ramirez, of having social and political connections to multiple alleged drug lords and even offered up to $5 million as a reward for useful information.