CARACAS -(Dow Jones)- Venezuela's lawmakers are set to approve a new tax on oil companies that will take as much as 60% of the gains they derive from sudden increases in world oil prices.
The "sudden gains tax" proposal will kick in when the average price for Brent crude exceeds $70 in a particular month, according to a copy of the law proposal obtained by Dow Jones Newswires.
Once oil prices meet that threshold, oil companies that export "liquid hidrocarbons" from Venezuela will pay 50% of the difference between that $70 average and the actual sale price of every barrel, according to the document.
If the average price of Brent crude exceeds $100, the tax will rise to 60%, according to the document. The proposal notes the government will have the power to exempt certain exports from this tax.
Lawmakers are expected to approve the proposal in a first reading later Thursday.
President Hugo Chavez vowed to impose the tax early this year as part of his government's policy to demand as much as possible from oil companies operating in Venezuela.
-By Raul Gallegos, Dow Jones Newswires; 58-212-564-1339
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200804031151DOWJONESDJONLINE000891_FORTUNE5.htm