Pagina Siete reports:
They claim that the Incentives’ Act is not attractive
“There are many ways by which foreign investment is determined, Incentives Act seems to be not very attractive, despite amending and reduces the percentage of income that the state appropriates” he said in an interview with ERBOL Network.
He explained that transnational firms direct their capital into a country with natural resources, are guided more by other aspects that have to do mainly with the projection of oil prices in the international market, which is closely linked to political, strategic swings and others.
“Therefore, we do not see as appealing such incentives, the Government has a projected investment (12,000 million dollars) very high until 2019, but what we see as an attitude of oil companies is that in recent years they will ensure production continue to face falling prices, ie produce more volume and thus maintain the sales value of production,” he said.
Law 767, enacted in December 2015 provides for the establishment of an incentive fund to be financed with 12% of the resources of the Direct Tax on Hydrocarbons, before distribution, received by the governorates, municipalities and universities.
Governorates earmarked 417 million dollars and municipalities, 1,031 million dollars, according to the government.