Venezuela's Ministry of Mines and Energy has proposed that legislation be drawn up soon to phase down the tax bite on state oil company Petroleos de Venezuela SA. Pdvsa, which pays more than 82% of its operating profits in taxes, has been forced to slash capital and operating budgets and defer some projects because of the cash squeeze caused by its tax burden. The new law would phase out in 1993-96 the export value system, which taxes Pdvsa oil revenues at a price higher than the price
Venezuela's Ministry of Mines and Energy has proposed that legislation be drawn up soon to phase down the tax bite on state oil company Petroleos de Venezuela SA.
Pdvsa, which pays more than 82% of its operating profits in taxes, has been forced to slash capital and operating budgets and defer some projects because of the cash squeeze caused by its tax burden.
The new law would phase out in 1993-96 the export value system, which taxes Pdvsa oil revenues at a price higher than the price received. The reduction would save Pdvsa about 9 billion bolivars ($117 million) in 1993 alone.
Venezuela's Ministry of Finance estimates the value of the nation's 1993 petroleum exports at $11.89 billion, slightly higher than the projection for 1992. That breaks out as 2.075 million b/d of crude and products valued at an average $15.70/bbl.
Pdvsa reported exports of crude and products averaging slightly more than 2 million b/d the first 8 months of the year vs. 2.12 million b/d tallied for all of 1991.
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