In order to fund growing public expenses, Venezuelan President Hugo Chávez said he was looking at several ways to find more resources, including the creation of new taxes. Such a move would be aimed at encumbering "excess expenses."

Chávez announced the likely tax on expenses during his radio and television show Aló, Presidente (Hello, President). He underscored that his administration was reviewing the background to determine the rate of the tax to be levied on excess expenses.

According to Chávez both individuals and legal persons "spend and spend." The he said that the tax on expenses is levied both in the capitalism and in communism.

Chávez would not elaborate on his new tax scheme, but under his draft reform to the income tax law, some changes to this tax are outlined.

Experts believe that parallel to the changes to the income tax a capital levy would be implemented on individuals. This proposal was forwarded to the Vice-President's Office for review, and tax officials claim that people owning assets above VEB 940.8 million (USD 438,131) would have to pay this tax.

In order to meet public expenses next year, the government needs to raise funds. Official sources say tax contribution should exceed USD 27.9 billion, as the 2008 budget is around USD 65.2 billion.