MercoPress. South Atlantic News Agency

Bolivia demands back taxes from oil corporations

Bolivia is claiming 40 million US dollars in back taxes from oil corporations, a sum which could jump to 200 million US dollars if fines and administrative costs are included, said Wednesday an official source from the Bolivian government.

Lower courts have ruled favourably but oil corporations have appealed to the Supreme Court, said Emigdio Caceres, head of the Bolivian Internal Revenue Service.

"Let's hope they are favourable to the government because it will benefit the country. We're talking of 40 million US dollars", said Caceres following a meeting with Hydrocarbons minister Andres Soliz Rada.

Caceres and Soliz Rada met to consider how the Internal Revenue Service is to monitor oil corporations as part of the reforms being planned with the ultimate goal of nationalizing the hydrocarbons industry. The idea is to closely follow operations along the line from the oil and natural gas deposits, distribution and end consumers.

Meantime a government spokesman advanced that "very soon" President Evo Morales will reveal a national development plan with the purpose of dismantling "colonialism and neo-liberalism" which will include nationalization of hydrocarbons and a "drastic" reform of the mining regime.

Planning minister Carlos Villegas said that "on the one hand we want to dismantle all the structure mounted since the arrival of the Spaniards in Bolivia (five centuries ago) and which consolidated in the republic, a true expression of colonialism. Furthermore we want to dismantle the neo liberal (economic) architecture built over the last twenty years".

Regarding hydrocarbons, "President Morales very soon will be making a public announcement with contents of the nationalization draft", added Mr. Villegas.

International oil corporations which dominate the industry in Bolivia have complained bitterly that the government hasn't announced or given clues as to how "nationalization will work, which does not necessarily mean expropriation", according to President Morales words.

"It'll be a gradual process. We don't want extreme or abrupt measures, or shocks which only generate uncertainty", insisted Mr. Villegas who underlined that the purpose of the new rules is "government control over hydrocarbons plus recovering the financial surpluses".