Capriles demands immediate tax relief for Venezuela post-earthquake economic fallout

Venezuelan opposition lawmaker Henrique Capriles has called for urgent tax relief measures to cushion the economic blow from recent earthquakes. A month after the twin tremors, Capriles stated on social media that the government has yet to implement any fiscal exemptions or relief for affected businesses and citizens.

Capriles specifically criticized the continued application of the 3% tax on foreign currency transactions (IGTF) and the 16% value-added tax (IVA). He argued that maintaining these taxes "continues to squeeze those who are trying to help with their own resources" amidst the disaster.

The lawmaker also urged a thorough review of worker incomes. In Venezuela, the minimum wage remains at 130 bolivars per month, equivalent to about 18 cents. While the government provides bonuses up to $240, these do not affect labor benefits. Recent economic data highlights the strain: the food basket for a family of five cost $756.45 in June, requiring over 3,400 minimum wages or more than three government bonuses to cover. Inflation surged to 13.8% in June, up from 6.3% in May, with a 129.8% cumulative inflation in the first half of the year.

The earthquakes, measuring 7.2 and 7.5 magnitude, have officially resulted in 5,546 deaths, 16,740 injuries, and left 17,907 people homeless, with nearly a thousand buildings damaged. The World Bank projects direct material losses at $19.6 billion, warning that slow reconstruction could hinder Venezuela's economic trajectory for the next decade.