Venezuela Government Considers Using Cryptocurrency For Tax Collection

The Venezuelan government is planning on collecting taxes in the country by using cryptocurrency as a new tax agreement has been signed in the country. According to a local report, the government of Venezuela may soon start using its native cryptocurrency Petro (PTR) for the collection of taxes and sanctions.

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By doing so, the government aims to boost its Petro digital currency’s adoption in the country. Despite some concerns about the use of cryptocurrency for tax collection in the country, Venezuelan mayors have agreed with the government’s plan.

Collecting Taxes in Venezuela using Cryptocurrency

A tax agreement has been signed in Venezuela known as the “National Tax Harmonization Agreement” by the Bolivarian Council of Mayors of Venezuela. The tax agreement is for 305 municipalities all across the whole country. As per this new tax bill, the use of cryptocurrency is now allowed in the country for collecting payments of taxes as well as sanctions.

Venezuela’s digital currency Petro (PTR) has now been referred to as a legal payment option in the country for the collection of tax payments.

As per the report, Nicolas Maduro, the President of Venezuela has selected Delcy Rodriguez the Executive Vice President for this task giving her the responsibility to handle it. Apart from the implementation of the registry of taxpayers, she will develop a monitoring system and exchange platform for various companies for recording payments.

While sharing her view on this, Rodríguez said:

“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.”

Apart from this, as announced by the government of Venezuela on the 11th of June, almost 15% of payments on various petrol stations were made via Petro cryptocurrency. This shows that the Petro digital asset is getting a wider adoption in the country.

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Meanwhile, Bitcoin (BTC) trading volume in Venezuelan Bolivar on peer-to-peer (P2P) cryptocurrency exchange LocalBitcoins has surged to a new all-time high in the country.