Venezuela Economist Proposes Tax Reform After Earthquakes

Asdrúbal Oliveros proposed a tax reform in Venezuela to fund reconstruction after earthquakes impacted La Guaira and Caracas in late June. He argued that rebuilding should become the country’s top economic priority and requires both international aid and increased domestic revenue.

Oliveros estimates direct damages range from 7.5 to 9 billion dollars, roughly 8.5% of Venezuela’s GDP, with total reconstruction costs potentially reaching 13 to 15 billion dollars. He notes the Venezuelan state’s current financial capacity is insufficient to cover these expenses.

The economist suggests combining funding sources including unlocking foreign assets like funds from the IMF and gold held in England, securing support from international organizations, and implementing a tax reform designed to broaden the tax base and generate emergency income. Failure to respond effectively, Oliveros warns, could extend the rebuilding process and hinder economic growth.