* President Hugo Chávez trumpeted plans to implement
a monetary reform under which three zeros would be eliminated
from the Venezuelan bolivar. This proposal will be assessed
in the first quarter, passed in the second half and the new
currency -which he branded "strong bolivar"- will start circulating
in 2008. He suggested February 4th, 2008 -the date when his
failed coup d'etat against President Carlos Andrés Pérez
marks its 16th anniversary- as the date for the "strong bolivar"
to start circulating.
* Hugo Chávez also disclosed a move to cut three percentage
points from value-added tax (VAT) as of next March 1st, and
other two percentage points as of July 1st this year. He explained
they expect this reduction helps cut three percentage from
the annual inflation rate. According to Chávez, VAT will
continue to decrease and new taxes will be levied, such as
capital taxes.
* The Venezuelan ruler said his government is increasing
efforts to collect income tax, as no significant progress
has been made in this area, he conceded.
* President Chávez announced a bill to fight hoarding,
speculation and usury related to food amidst government-imposed
price controls. Under this bill, the government could
nationalize firms producing and selling food if they fail
to comply with the regulated prices of beef and other staples.
The new regulation is likely to be okayed February 16 in a
ministerial council.
* Under the new law, any direct or indirect sales of food
items at prices higher than those set by the government could
be punished with 2-6 year prison term and fines amounting
to a maximum amount of USD 350,000.
* According to Chávez, the bill to fight food hoarding
and speculation provides for punishments such as seizure of
the involved commodities; temporary closure of businesses
for up to 90 days, during which the infringer will have to
pay wages to workers; expropriation of "necessary goods;"
and even disqualification of individuals or legal persons
for engaging in trade activities.
* Hugo Chávez also disclosed he has allocated funds
for a number of projects, including USD 35.6 million to implement
an updated system of geographic information for the Ministry
of Agriculture and Lands. Further, Chávez' government
is injecting over USD 157 in subsidized food retailer store
chain Mercal.
* Chávez also earmarked USD 35.4 million to purchase
3,500 tons of beef -a move that he expects will benefit 3.7
million people a month.
