Fiscal voracity and unequal competition affect growth of the business sector in Carabobo

Fiscal voracity and unequal competition affect growth of the business sector in Carabobo

Photo: La Patilla

 

The President of Fedecámaras Carabobo (Carabobo State’s Federation of Chambers of Commerce), Rafael Trejo, indicated that they estimate growth in the business sector for this year of between 8% and 10%, compared to 2021. He specified that the sectors most adversely affected are the industrial, manufacturing and construction sectors.

By La Patilla

Nov 22, 2022

Mr. Trejo stated that fiscal voracity, lack of guarantees, distrust to invest and exemption from paying tariffs for finished imported products into Venezuela, are the main problems faced by the business community.

Finished imported goods are exempt from paying taxes, according to what was approved by the administration of Nicolás Maduro in 2018, with the objective of “accelerating the growth of the country.” Initially, the exoneration would be in force for one year, but the decree has been maintained in time with successive extensions.

The Official Gazette No. 6,697, dated May 1st, 2022 in Decree No. 4,683, exempts import taxes, Value Added Tax (VAT) and the rate for determination of the customs regime for the importation of merchandise until December 31st of this year .

“Businessmen are giving everything for the country. They need to trust, guarantee, and clear rules. There is still a very large fiscal voracity, we hope that with new laws this can be reduced and Venezuelan businessmen are allowed to work under equal conditions. Those products that are coming from abroad that do not pay taxes, VAT, generate unequal and unfair competition. We hope that little by little these indexes or tax rates that are being charged to us are resolved and that are adjusted to reality and there is a fair and necessary competition,” he affirmed.

He recalled that this year the Central Western Economic Block was created, and it involves companies from the states of Lara, Yaracuy, Falcón, Portuguesa, Aragua, Cojedes and Carabobo, with the aim of seeking a path to growth and facing the economic crisis.

According to data provided by Fedecámaras Carabobo in 2020, of the 6,000 companies that made up the Carabobo Industrial Park in 2001, only 600 were still open two years ago and operated at 30% of their capacity. Some 5,400 were paralyzed throughout the 20 years of the Chavista era.

Fifth Business Round

This Tuesday, November 22nd, the 5th Business Roundtable was held in Valencia. The President of Fedecámaras Carabobo pointed out that the event is an opportunity to establish alliances and negotiations among the more than 100 participating companies.

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