US$9bn For Caracas From Windfall Oil Tax

Venezuela's energy minister Rafael Ramírez has said that the government is expecting additional revenues of US$9bn per year following its imposition of a windfall tax on crude production. The new tax, due to take effect immediately, increases the state's share of oil revenues when Brent crude prices rise over US$70 per barrel (bbl). With prices currently hovering above US$110/bbl, Venezuela is hoping to receive revenues of US$770mn per month, which President Hugo Chávez aims to spend on social programmes prior to an election later in 2008.

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