Aug. 30 (Bloomberg) -- Venezuela's National Assembly approved a government request to reduce the value-added tax rate after seven quarters of economic growth boosted tax receipts.

The assembly, controlled by supporters of President Hugo Chavez, cut the rate to 14 percent from 15 percent. The lower rate will reduce value-added tax collection by 482 billion bolivars ($224 million) during the last four months of the year, congress said on its Web site. The government also plans to exempt sales of home appliances and furnishings from the tax, National Tax Superintendent Jose Vielma said.

``Why has all this been done?'' Vielma said in an interview on RCTV television station. ``Because tax collection this year has been extraordinary.''

A surge in government spending helped fuel 9.3 percent economic growth in the first half, leading to a 65 percent jump in tax collection. Venezuela's National Tax Superintendency estimates that non-oil tax receipts may total 38 trillion bolivars ($17.7 billion) this year. The country's original tax goal was 27 trillion bolivars.

Congress said the rate reduction will take effect on Sept. 1. Vielma said the tax would begin Oct. 1 to give companies time to adjust to the change.

``The tax must start Oct. 1,'' Vielma said in an interview on RCTV television station. ``It can't start Sept. 1 because that would cause a big disruption in the economy.''

To contact the reporter on this story: Alex Kennedy in Caracas at Akennedy1@bloomberg.net

Last Updated: August 30, 2005 16:37 EDT