Ecuador’s President Proposes Tax Increase to Fund War on Drug Cartels

• Ecuador’s President Daniel Noboa is seeking to raise taxes to address the country’s financial issues and combat drug cartels.
• He wants to increase the value-added tax (VAT) from 12% to 15% to fund security measures.
• The government states that the crisis requires purchasing weapons and supplies for military and police equipment.
• S&P Global Ratings recently downgraded Ecuador’s outlook to negative.
• Ecuador’s dollar bonds performed well in comparison to other emerging-market bonds.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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