'Windfall oil tax' approved in Venezuela
 04 Apr 2008
A windfall tax on oil profits of producers belonging to Organisation of the Petroleum Exporting Countries (Opec) has been approved by the Venezuelan Congress
The Tax on Extraordinary Hydrocarbons Prices Law will tax 50 per cent of oil revenues between $70 (£35) per barrel and $100 per barrel and 60 per cent of revenues of more than $100 per barrel.
The new legislation has yet to be passed but the draft says companies can deduct windfall tax payments from their income taxes.
Congress's Angel Rodriguez was quoted by the Associated Press as saying the tax was justified because "oil companies have excessive earnings that go beyond reasonable levels of profit".
Crude oil and refined product exports will be subject to the charges based on the average monthly prices of benchmark Brent crude.
AP suggested the legislation will "broaden state control over foreign oil companies operating in Venezuela", which has the largest petroleum deposits in the West.
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