MARIANNA PÁRRAGA
EL UNIVERSAL

The overwhelming increase in the input by state-run oil holding Petróleos de Venezuela (Pdvsa) in 2006, to USD 11.9 billion raised the percentage of oil revenues that ended in the hands of the Venezuelan state, both as taxes and contributions to social welfare programs.

While in the 2006 balance sheet, audited by accounting firm Alcaraz, Cabrera & Vásquez, this input was not recorded in a consolidated way, Minister of Energy and Petroleum and Pdvsa CEO Rafael Ramírez noted during his address to stockholders that out of the USD 55.2 billion that entered Pdvsa chests last year from exports and operations in the domestic market, USD 39.2 billion, or 70.9 percent, landed in the State pockets.

These numbers mark a significant increase compared with 2005, when Pdvsa gave the State a total of USD 25 billion both for taxes and social welfare. This rise is even higher as compared to 2004, where Pdvsa transferred USD 16.4 billion on this account.

Measured as a percentage of additional income, Pdvsa total input to the State has grown steadily: from 47.9 percent in 2004 to 54.7 percent in 2005, and then to 70.9 percent in 2006.

Over the past three years, Pdvsa input to the State accounts for, in the aggregate, the significant amount of USD 80.6 billion.

Everywhere
Most of the USD 39.2 billion provided by Pdvsa to the Executive in 2006 accounted for royalties, that is, USD 17.5 billion. However, the income tax took USD 7.5 billion, significantly over the numbers reflected in the audited balance sheet. This shows that international accounting standards were used in the financial statements to estimate the tax. In the practice, however, it seems that a different method is used and that increases the contribution, perhaps by deducting otherwise the item for social welfare programs.

In addition to these outlays, Pdvsa paid USD 797 million on account of exploitation taxes, USD 1.3 billion in dividends and USD 11.9 billion in social development. The latter was 64.5 percent higher than the numbers recorded in 2005 and different from the entry in the balance sheet.

Translated by Conchita Delgado