The Venezuelan government on Sunday announced tax exemptions and subsidies for some key food products in a bid to control soaring prices.

A shortage of some key food products has been hitting the Venezuelan markets of late, pushing prices well above the government fixed levels, a scenario, which the government blames on speculators.

Beef, turkey, pork, mayonnaise, porridge, cheese and food transport services will be exempted from value added tax. Sugar, corn, sorghum and rice will enjoy a 183-million-U.S. dollar subsidy, among which 70 million will be paid in February and the rest - 113 million - in September.

The announcement was made by Vice President Jorge Rodriguez, Minister of Finance Rodrigo Cabezas and Minister of Light Industry and Trade Maria Cristina Iglesias in Maracaibo, capital city of the northwestern state of Zulia, at the opening of a market in Libertador Avenue, where many of the products are sold.

Since early 2003, President Hugo Chavez has been regulating prices for some basic products in a bid to control inflation and protect the poor.

Source: Xinhua