Tiziana Polesel, second vice president of the Federation of Chambers and Associations of Commerce and Production of Venezuela (Fedecámaras), said Tuesday that when taxes do not leave margin for the profits “the temptation to abandon formality, or even close, is high.”
An investigation by the IESA supports these statements, showing that by the end of 2024 the Seniat had raised 108% more compared to the previous year. However, this growth in collection has been accompanied by an increase in compliance costs and a decrease in profit margins, further making the operation of formal companies difficult.
Fedecámaras representative assured the web portal Time that the costs of operating in a country with “poor” public services are added to the fiscal pressure.
“Companies must replace electricity, water, gas and fuel failures, but they cannot transfer those expenses to the final prices for low demand.”
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Slow began, slow is maintained, says Fedecámaras
The union leader warned that the Venezuelan commercial sector faces a start of the year marked by paralysis and exchange uncertainty.
He described the first quarter of 2025 as “worryingly slow”, with a stagnant trade since January and agreed in March due to the exchange differential, generating nervousness in key sectors.
“The movement is minimal, and this impacts the entire production chain,” he said.
To illustrate this situation, he gave the construction sector as an example, whose stagnation drags the trade that supplies it. “If other sectors are not reactivated either.”
