The government of Venezuela is considering using cryptocurrency for collecting taxes in the country. Venezuela will use its native cryptocurrency Petro (PTR) for this purpose. Venezuelan mayors also seem to have agreed with this plan of the government in spite of some concerns regarding it.
Cryptocurrency as means of collecting tax payments
In the country, the “National Tax Harmonization Agreement” has been signed for around “305 municipalities” by Venezuela’s Bolivarian Council of Mayors. This also involves the use of cryptocurrency as a means of collecting tax payments. For collecting payments of taxes, the government will use Petro (PTR) cryptocurrency while boosting the adoption of the coin.
Delcy Rodríguez who is the vice president of Venezuela has been given the charge to use a “digital consultation tool” in order to implement taxpayers’ registry. Apart from this, she is also given the task to make a system for monitoring and exchange for storing information and recording tax payments in crypto.
While commenting on this in the announcement, the Vice President of Venezuela stated:
It is the simplification of procedures, making the State’s administrative activity at the service of the people more efficient, of the economic sectors that stimulate economic activity in the productive and commercial areas, framed in this week of flexibility that began on Monday.
Those who do not have the proper technology for processing payments in Petro (PTR) are still collecting taxes by using the fiat currency of the country known as Bolívar.
Last month on June 11, the government of Venezuela made an announcement saying that Petro is being used for making payments at various petrol stations all across the country. According to the government’s announcement, almost 15% of these payments were being done using the Petro cryptocurrency.