Re: (OPE-L) Re: latest shoe on Venezuela's oil

From: michael a. lebowitz (mlebowit@SFU.CA)
Date: Mon Oct 11 2004 - 02:54:39 EDT

Hi Jerry,
         I assume (because we don't return to Caracas until Thursday) that
the term 'exploitation' here was used in the sense of use of natural
resources. It would apply, I assume, only to transnationals because they
are the private firms that invested in Vzla and received the sweetheart
deals from the preceding governments. What makes this item especially
interesting is that the hydrocarbon tax (brought in as one of Chavez's 49
proclaimed laws in December 2001) was never seen as retroactive; the move
to raise the tax on 'old' investments is sure to generate unhappiness.

At 16:46 10/10/2004, you wrote:
> > He said he was raising the exploitation tax on several multibillion dollar
> > oil ventures in the southeast Orinoco belt to 16.6 percent from the
> > current
> > level of 0-1 percent, which he criticized as "negligible."
>Michael L,
>What is the definition of an "exploitation tax"? Is
>this tax levied only on transnational corporations?
>Has there been any national discussion about what
>exactly constitutes exploitation?
>In solidarity, Jerry

Michael A. Lebowitz
Professor Emeritus
Economics Department
Simon Fraser University
Burnaby, B.C., Canada V5A 1S6

Currently based in Venezuela. Can be reached at
Residencias Anauco Suites
Departamento 601
Parque Central, Zona Postal 1010, Oficina 1
Caracas, Venezuela
(58-212) 573-4111
fax: (58-212) 573-7724

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