Noboa’s Proposal to Increase VAT to Tackle Internal Conflict in Ecuador

• President Daniel Noboa proposes to increase the Value Added Tax (VAT) from 12 to 15 percent.
• The proposal is aimed at combating the internal armed conflict in Ecuador.
• Noboa sent an urgent economic bill to the National Assembly to implement the tax increase.
• Some experts criticize the measure as neoliberal and potentially harmful to vulnerable sectors.
• If approved, the VAT increase would take effect on March 1, 2024, affecting all products and services.
• The bill applies to all individuals and legal entities, both Ecuadorian and foreign, residing or conducting economic activities in the country.
• The government expects to collect an additional 1.071 billion dollars in taxes this year.

Source: plenglish.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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