February 12, 2020 / 3:58 PM / 10 days ago

Venezuela to exempt PDVSA, joint ventures from income tax -ministry

CARACAS, Feb 12 (Reuters) - Venezuela will exempt state oil company Petroleos de Venezuela and its joint ventures with foreign companies from income tax, the government said in its official gazette circulated on Wednesday.

The move comes as U.S. sanctions on PDVSA, designed to force out socialist President Nicolas Maduro, cut off the company from the global financial system. A sharp drop in oil production last year, the result of years of underinvestment and mismanagement, has also hurt the company’s finances.

“The Venezuelan state aims to execute an integral plan to increase the oil sector’s productive capacity,” the government said in a decree published in the gazette, dated Jan. 28 but circulated on Wednesday.

“The national executive can adopt measures directed toward re-establishing hydrocarbon production levels.”

Venezuela enacted a similar measure in mid-2018, but the measure expired at the end of that year. (Reporting by Luc Cohen; editing by Jonathan Oatis)

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