Fausta's blog

Faustam fortuna adiuvat
The official blog of Fausta's Blog Talk Radio show.

Friday, April 04, 2008

Hugo taxes his own oil profits

If you can't blind them with brilliance, baffle them with bull....

Hugo nationalized the oil producers, and now he's raising the tax on oil.

You read it right.

Venezuela 'to tax oil windfall'
Venezuela is planning a windfall tax on what it calls "excessive" profits of energy firms to allow state revenues to benefit from high oil prices.

The tax will take 50% of oil revenues above $70 per barrel, and an additional 60% of revenues over $100 per barrel, legislator Angel Rodriguez said.

He told state news agency ABN that oil firms had surpassed "reasonable levels of profitability".

The move will affect foreign oil firms operating in Venezuela such as Chevron.
Indeed it will, but
The tax will also apply to state oil company PDVSA, which now controls all of Venezuela's oilfields.
If that makes sense to you, then come and explain it to me in the comments section.

More Bolivarian brilliance at Ace's: Hugo Chavez Nationalizes Cement Industry, Eats Sandwich Bigger Than His Own Head

I guess he needs money to pay for the subs (and not the sandwich kind but they are bigger than his head). Putin doesn't look like the kind of guy who takes MasterCard.


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At 7:06 PM, Anonymous Gringo said...

He is leaving out the place where he is most subsidizing the better off and the poor. Gasoline costs around 15 cents US per gallon in Venezuela. The poor do NOT own cars in Venezuela.Hugo needs to raise the price of gasoline.

At 11:50 PM, Blogger Pat Patterson said...

Eventually oil exploration and then infrastructure will be moribund. Let a thousand Jed Clampett's bloom! Or they can issue hundreds of butterfly nets to the Bolivarians to collect the oil that comes from all those wonderfully tasteful and infinite oil fountains.

At 7:40 AM, Anonymous GM Roper said...

Fausta, it is EASY to explain: Chavez is an idiot who believes his own rhetoric.

At 12:39 PM, Blogger Nora said...

ohhh, Lord... This must be as the order to change the hour in Venezuela, and Chávez and his brother didn't agree on what there were going to do and what it was for... :(


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