Venezuela's industry group seeks tax relief and credit for earthquake recovery

Venezuela's most significant industrial association, Conindustria, has presented an urgent proposal to the interim government, urging immediate fiscal relief and credit to aid the nation's reconstruction efforts. The private sector group has put forth a "Transitional Legal Framework" designed to revitalize the struggling economy, which has been severely impacted by recent earthquakes in the central-northern regions.

Conindustria President Tito López emphasized the need for swift action, stating, "Venezuela cannot wait for slow bureaucratic reforms. The country demands immediate legal actions to unblock the national productive apparatus." The proposed framework, developed over time, is intended to operate within a 3 to 5-year timeframe. It aims to consolidate necessary legal reforms into a single instrument, enabling immediate legislative action while the broader legal system is adjusted.

The framework's core objectives include stimulating both national and foreign investment through tax and parafiscal incentives, simplifying customs and transport procedures, and prioritizing the entry of humanitarian aid. Crucially, it also calls for special incentives to support the operation and recovery of businesses in areas directly affected by the seismic activity.

López further explained that the proposal seeks to address critical economic issues, such as extending the Value Added Tax (IVA) payment period and encouraging informal businesses to formalize. Conindustria also advocates for specific measures, like VAT and income tax exemptions, for companies operating in La Guaira state, particularly for the few businesses that survived the earthquakes. The overarching goal is to reactivate the productive sector immediately, counteract the devastating effects of the earthquakes, increase formal employment, and urgently create jobs for Venezuelan families.