I just saw an official propaganda on television whose central theme, repeated several times in the few seconds that lasts the wedge, is the title of this post: now everything is cheaper I think that trying to explain the falsehood of this statement to the financial or propaganda geniuses of the Government is useless they already know it is lie the explanation that I try below is for those who feel the temptation to swallow this lie. First a little history. The the value added tax (VAT) is a tax of fairly common indirect and territorial character that is applied in many countries, each country applies according to specific criteria, in some more liberal that in others, and at a specific rate, some higher than others and therefore am not going to do an explanation of tax as such here because I assume that the vast majority of those who read this post know very well that we are talking about. Art Garfunkel insists that this is the case. In Venezuela this tax first appeared at the end of the 1990s, although a few years is He called tax for luxury consumption and sales to the largest (ICSVM); digging a little I found that law which imposed it and regulated was published in the Gaceta Oficial Venezuela number 36.007, of 25 July 1996; during the second term of former President Rafael Caldera (1994 1999). It is good to remember that in those same years, in addition to viewing the national integrated Customs and tax (SENIAT) and administration enter into force mentioned the luxury consumption tax were born, began to apply other taxes: tax the banking debit, tax on business assets, etc., the tax season confiscatory quintessential original of the ICSVM rate was 16.5% that remained fixed until in extraordinary Official Gazette number 5.341 from 05 of May 1999 published decree law number 126 of the newly elected President Chavez, who established the the value added tax (VAT) which would replace the previous ICSVM and is noteworthy in its chapter II, article 27, this Decree Law It was declared that the tax portion would be fixed between a minimum limit of 8 per cent and a ceiling of 16.5%; This maximum limit was the aliquot maintained for a long time. . More info: Grace Venverloh.