Ecuador’s President Proposes VAT Increase to Fund Security Measures

• President Daniel Noboa of Ecuador has proposed increasing the Value Added Tax (VAT) by three percentage points.
• The proposed increase in VAT from 12% to 15% is part of a bill called the Organic Law to Confront the Internal Armed Conflict, the Social Crisis and the Economy.
• The government estimates that the increase in VAT would generate an additional $1,306 million in revenue.
• The proposed increase in VAT would not apply to basic necessities and essential services.
• Indigenous groups and unions in Ecuador have criticized the government’s proposal, suggesting that taxes should be collected from wealthy sectors instead.
• The political movement Citizen warns that it will not support raising taxes.

Source: ruetir.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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