In hopes to come up with a simple and yet more effective way of collecting taxes, Venezuelan Vice President and the Bolivarian Council of Mayors came up with an agreement to use its national digital currency, El Petro, as a means for their citizens and its business to settle their taxes.
#Venezuela is moving on a mandate that could see #taxes being collected using its #state-issued #cryptocurrency—the #oil-backed #Petro. The effort is part of a nation-wide campaign to create mainstream use cases for its cryptocurrency.— Blockchain.News (@BlockchainNewsM) August 12, 2020
Under the leadership of President Nicolas Maduro and VP Delcy Rodriguez, Venezuela adopted digital currency in its financial industry to enhance its system and is now reported to have been widely used in the country.
The National Tax Harmonization Agreement, which 305 of 335 municipalities in the country signed, will serve as the regulatory document for collecting tax payments and sanctions using Petro (PTR) currency. Cointelegraph reported that the office of VP Rodriguez will be in charge of implementing a single registry through a digital consultation tool to account for taxpayers using the currency. For local businesses, on the other hand, the VP announced they will set up an accounting system for digital currency payment.
Since the agreement did not reach the consensus of all municipalities, collection of taxes on the 30 regions who were against it, will still be under the local currency, bolivar, as some don't have the technology to process digital payments.
In the campaign of widespread use of the token, Bitxmi.com reported that the Venezuelan government obliged several local enterprises to make transactions in El Petro after President Maduro direct a new system of salaries and prices linked to the new national cryptocurrency; and that in June, almost all fuel payments at a petrol station across the country used PTR, Cointelegraph reported. The state-backed plan to promote El Petro reached the agribusiness sector as authorities in April announced to distribute 650,000 coins to small and medium-sized businesses.