Government considering Tobin Tax to prevent currency speculation

www.vheadline.com Posted: Thursday, March 06, 2003 By: Robert Rudnicki

According to IRS/Seniat superintendent Trino Alcides Diaz the government is considering implementing a Tobin Tax to cut down on currency speculation, as and when the current currency controls are lifted.

The IRS chief went on to say that he expected the current controls to be the shortest in Venezuelan history, and that the Tobin Tax would be imposed on any foreign currency purchases made for any other purpose than imports and production of goods.

Alcides Diaz also said that the government would consider suspending the foreign exchange controls currently in place if a potential war on Iraq caused significant increases in the international price of oil.