http://www.guardian.co.uk/feedarticle?id=7435275
Venezuela`s Congress on Thursday gave initial approval to a windfall oil tax that extends leftist President Hugo Chavez`s campaign to increase government revenue from the OPEC nation`s oil industry.The tax will tap into private company profits amid record oil prices above $100 per barrel, giving Chavez additional funds to shore up his self-styled socialist revolution and stepping up his confrontation with global energy giants.A statement on the legislature`s Web site said the measure will "readjust the excessive benefits of foreign investors that are above the reasonable levels of profitability."
The legislation, called the Tax on Extraordinary Hydrocarbons Prices Law, taxes 50 percent of oil revenues between $70 per barrel and $100 per barrel and 60 percent of revenues above $100 per barrel.
Venezuela`s Congress on Thursday gave initial approval to a windfall oil tax that extends leftist President Hugo Chavez`s campaign to increase government revenue from the OPEC nation`s oil industry.The tax will tap into private company profits amid record oil prices above $100 per barrel, giving Chavez additional funds to shore up his self-styled socialist revolution and stepping up his confrontation with global energy giants.A statement on the legislature`s Web site said the measure will "readjust the excessive benefits of foreign investors that are above the reasonable levels of profitability."
The legislation, called the Tax on Extraordinary Hydrocarbons Prices Law, taxes 50 percent of oil revenues between $70 per barrel and $100 per barrel and 60 percent of revenues above $100 per barrel.