Venezuela To Impose Massive Tax On Oil Companies

Law360, New York (April 16, 2008, 12:00 AM EDT) -- Seeking a bigger cut of oil companies' soaring profits, Venezuela's National Assembly Tuesday reportedly passed a new oil tax that is expected to reap more than $9 billion a year for the government.

The tax on the exporters' oil revenue will be triggered whenever the average monthly price of crude oil crosses the $70 mark. The state will collect 50% of the revenue, calculated as the difference between the $70 dollar price and the final monthly average. When monthly crude prices exceed $100 per barrel, the...
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