Achievements and Shortcomings of the Venezuelan Government in Value Capture

The study begins with a bibliographic review of the historical background and the existing legal framework for the capture of value increments. It goes on to examine cases where value capture could have been applied and the modalities that were proposed for doing so. In Venezuela value capture is an eminently municipal revenue source, but it has not been prioritized by municipalities. In addition, current legislation regulating both the betterment levy and the levy on value increments presents difficult obstacles to their collection due to contradictory legal provisions and to requirements that must be met for the State to acquire revenue from these two sources and return it to the community. The opposition of political and social sectors to the betterment levy is also noted in the conclusions, as is the fact that due to “easy money” resulting from petroleum income the country lacks the cultural and ethical bases for the willing payment of taxes.