Venezuela to impose tax up to 25% on purchases in foreign currency

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Venezuela to impose tax up to 25% on purchases in foreign currency
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Venezuela will begin applying an extra sales tax on purchases of goods using for...

FILE PHOTO: Prices of energy drinks are seen in U.S. dollars at a"bodegon" in Caracas, Venezuela December 12, 2019. Picture taken December 12, 2019. REUTERS/Manaure Quintero/File Photo

Venezuelans have increasingly taken to using dollars or euros for day-to-day transactions, as hyperinflation erodes the value of the crisis-torn country’s bolivar currency. While the use of foreign currency was once banned in Venezuela, socialist President Nicolas Maduro last year relaxed exchange controls in a bid to boost commerce and industry in the face of a biting recession and U.S. sanctions. Maduro even called the use of dollars an “escape valve.”

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