Bolivia gas law passed but divisions remain

Last night, the Congress of deputies passed a ‘hydrocarbons’ law imposing 18% royalties on multinational energy companies and a 32% tax. It is slightly different to the government proposal, but doesn’t match the main opposition party’s (MAS) demand for 50% royalties.

There is lots of evidence that taxes as opposed to royalties (the difference between the two I think being at what point they are applied) are often evaded and rarely paid in full. So it is surprising that the leaders of the bloqueos have agreed to lift the blockades saying that they would await the decision of the Senate which can revise the law.


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