VENEZUELAN President Nicolas Maduro announced a complete income-tax break for the lowest-paid workers on Monday.
Mr Maduro said the “workers’ salary protection measure” would see anyone earning less than 9.6 million bolivars per year totally exempt from the ISLR income tax.
That was up from last year’s tax threshold of just over 1 million bolivars.
Mr Maduro said the change was needed in light of the five minimum-wage and household food allowance rises he made over the previous year, adding the break would benefit 95 per cent of earners.
By the official exchange rate 9.6 million bolivars would convert to £700,000, but on the rampant currency black market — partly driven by foreign counterfeiters’ demand for banknote paper — it would equal only £70.
The government-subsidised 19kg staple food parcels provided monthly to every family have a fixed price, currently 15,000 bolivars.