On January 31, the Executive branch enacted the tax and customs laws passed by the National Constituent Assembly (ANC) on January 29 which reform the Tax Code, the VAT and Customs laws, and create a single national productive portfolio. The first three regulations will come into force within the next 20 to 60 days, while the productive portfolio law came into effect on January 31.

The laws enacted by the Executive are:

• Tax Code Reform. Current tax exemptions are increased from five years to one year, with the possibility of being extended annually. In addition, fines incurred by tax evaders will be indexed to the currency with the highest exchange rate among those published by the Central Bank of Venezuela (BCV). Thus, they are no longer indexed to the tax unit (TU). It also enables the immobilization of assets as a sanction to those who do not comply with the law. It comes into effect February 28.

• Value Added Tax (VAT) Law Reform. It establishes a general applicable tax rate that will vary between 8% and 16.5%, as determined by the Executive branch. In addition, it establishes a surcharge of between 5% and 25% on goods and services paid with foreign currency and crypto currencies other than petroleum. Finally, it exempts flour of vegetable origin and bread, among other products, from VAT. It comes into force March 28.

• Single National Productive Portfolio Act. The mechanism has the objective of driving an increase in goods and services production and commercialization. Industrial promotion is carried out by financing public and private financial institutions. Sectors benefited include agro-food, manufacturing, tourism, health and mortgage sectors. The Act also foresees a governing committee responsible for distributing the portfolio funds which is already in effect.

Customs law reform. This limits the amount of imported products to boost the production and export of Venezuelan goods creating an inter-ministerial committee to manage tariff policy. It also eliminates two thousand tariff codes for exports and sets the fees that users must pay for the services provided by the Customs Administration. Finally, it establishes sanctions for companies, transporters and warehouses failing to comply with the law and enters into force on February 18.