Venezuelan Law Boosting Taxes for Oil E&P Faces Final Vote Thursday

The energy and mines commission of Venezuela's national assembly approved on Wednesday night the reform of several key articles of the hydrocarbons law and will send it for a final vote in full session on Thursday (May 11).

The reform allows the government to collect a new "extraction tax" of 16.67% on extra-heavy crude projects.

"As expected, we approved it and have just now sent it so it can be voted on in full session tomorrow," commission chairman Angel Rodriguez told BNamericas on Wednesday.

The extraction tax is actually 33.33% but companies can deduct the 16.66% they pay in royalties. Another difference is that while the royalties can be paid in cash or kind, the new extraction tax will have to be paid in cash.

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