Venezuela to Pump More Dollars Into Economy With Oil Tax

Venezuela will channel more resources from its oil exports to the central bank this year as it seeks to alleviate a shortage of dollars that has crimped imports, Oil Minister Rafael Ramirez said yesterday.

The government plans to reduce levies on the oil industry by changing rules on the so-called windfall tax that will now only be triggered on oil prices above $80 a barrel, instead of $70 a barrel. The move will reduce funding to President Hugo Chavez’s off-budget development fund known as Fonden and pump more dollars into the central bank, Ramirez said. The changes need to be approved by Congress.