The tax paid by foreign oil companies operating in Venezuela will be almost doubled, says President Hugo Chavez.
On his weekly television programme Hello President,
Mr Chavez said a new "extraction tax" of 33% would replace the current oil royalty of 17%.
He said the levy would raise at least $885m a year, some of which would be used to fund a housing programme.
Venezuela is the world's fifth oil exporter, and Mr Chavez has used oil income to drive his "revolution".
"We are going to create a new oil tax, called the tax on extraction,"
Mr Chavez told viewers of his marathon six-hour Sunday show.
"The companies that are pumping oil in Venezuela are making a lot of money," he said.
He said the details of the new extraction tax would be revealed in the next few days, but the figure mentioned by Mr Chavez and his oil minister is 33%.