I just saw a television propaganda theme, repeated several times in the few seconds. it takes the wedge, is the title of this post: “Now everything is cheaper” … I think trying to explain the falsity of this statement to the financial geniuses or propaganda of the government is useless … they already know is a lie … The explanation is attempted below for those tempted to swallow this lie. First a little history.

The Value Added Tax (VAT) is a form of indirect tax and territorial applies quite common in many countries, each country is applied according to specific criteria, some more liberal than others, and a specific rate, some higher than others and therefore I will not do here for an explanation of the tax as such because I assume that most of you reading this post know very well that we are talking about. In Venezuela this tax first appeared in the late 90s, although for some years was called “Luxury tax and Wholesale (ICSVM), digging a bit I found that the law which imposed and regulated was published in the Official Gazette of Venezuela number 36 007 of July 25, 1996, during the second term of former President Rafael Caldera (1994 – 1999). It is good to remember that in those years, in addition to seeing the birth to the National Integrated Customs and Tax Administration (SENIAT) and take effect mentioned luxury tax, were introduced taxes: bank debit tax, tax Business Assets, etc., the era of confiscatory taxes for excellence …