Venezuela Tax Superintendent Vielma Promises to Overhaul Agency

Caracas, May 15 (<a href=quote.bloomberg.com>Bloomberg) -- Venezuelan Tax Superintendent Jose Vielma, appointed yesterday by President Hugo Chavez, promised to overhaul the agency to increase tax collection and curb evasion, which he said will help narrow the country's budget deficit.

We are evaluating all points,'' Vielma said at a news conference. The changes are geared toward improving the economy, collection and cutting down on contraband.''

Vielma, a retired military officer who had been in charge of the Caracas International Airport, also vowed not to take punitive measures against more than 500 employees of the agency, who took part in a nationwide strike to force President Hugo Chavez from office. The strike began Dec. 2 and ended Feb. 1.

Improved tax collection is essential for Venezuela to narrow its budget deficit, which some analysts say will be equal to 5 percent of gross domestic product this year. The strike reduced oil output and sales. Taxes from oil sales made up 43 percent of government revenue last year.

Vielma replaced Trino Diaz, who resigned after Chavez criticized tax collection during his weekly radio program last weekend.

Last Updated: May 15, 2003 16:42 EDT