Venezuelans reportedly hit by new Bitcoin tax of up to 20% – Cointelegraph

The Venezuelan government has approved a new tax bill aiming to collect up to 20% in taxes from cryptocurrency transactions, according to local reports.

Venezuelas National Assembly helda second discussion session on Thursday for a new draft bill targeting taxes on large financial transactions in cryptocurrencies like Bitcoin (BTC).

The Venezuelan government reportedly approved the draft bill last Thursday, requiring local firms and individuals to pay up to 20% for operations carried out in cryptocurrencies as well as foreign currencies such as the United States dollar.

Filed on Jan. 20, the draft law aims to collect 2%20%from transactions in any currencies other than those issued by the Bolivarian Republic of Venezuela, or the Venezuelan bolivar and the countrys oil-backed cryptocurrency, El Petro.

The initiative aims to incentivize the use of the national currency, which reportedly lost over 70% in value last year alone and shed nearly all its value over the past decade.

It is necessary to guarantee treatment at least equal to, or more favorable, to payments and transactions made in the national currency or in cryptocurrencies or crypto assets issued by the Bolivarian Republic of Venezuela versus payments made in foreign currency, the bill reads.

Related: India to introduce 30% crypto tax, digital rupee CBDC by 202223

As previously reported by Cointelegraph, Bitcoin adoptionhas been skyrocketing in Venezuela in recent years, with many thousands of local businesses starting to move into cryptocurrency to survive hyperinflation. In October 2021, a major international airport in Venezuela was preparing to start accepting cryptocurrencies like BTCas payment for tickets and other services.

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Venezuelans reportedly hit by new Bitcoin tax of up to 20% - Cointelegraph