Tuesday, December 14, 2010

Hugo Chavez uses his "special powers" to hike sales tax

Dec 13 (Reuters) - President Hugo Chavez said on Monday he would use special decree powers to hike Venezuela's sales tax rate and raise cash to help the South American nation recover from disastrous floods.

"We need extraordinary funds and one of the laws we are going to approve with the Enabling Law is going to be a rise in sales' tax," Chavez said.

The Venezuelan leader said the government had still not decided by how many points it wanted to raise the tax from the current level of 12 percent. But any increase would have only a "minimal effect" on inflation, Chavez said.