Daniel Noboa, president of Ecuador, has presented a bill of organic law before the National Assembly with the aim of confronting the internal armed conflict and the social and economic crisis. To finance the costs necessary to confront crime he organized the decree an increase in the Value Added Tax (VAT) from 12% to 15%.
The main purpose of said law is the collection of taxes to meet the obligations of the State in the implementation of plans, programs, actions and public policies for the social sectors of Ecuador, as well as stabilizing public finances, redistributing income and addressing needs. . ity of resources in the face of the “serious crisis” that the country is experiencing.
The text has been sent urgently to be debated, discussed and approved by the Assembly as soon as possible, in the current context of violence and insecurity that the country has been suffering in recent years and that these days has reached an unprecedented rebound. . , coinciding with the release from prison of a criminal leader.
Outbreak of violence
Ecuador is immersed in the midst of a renewed spiral of violence after the escape of the leader of Los Choneros, Adolfo Macías, alias ‘Fito’. After the Government declared a state of emergency to regain control of the prisons, chaos spread both outside and inside the prisons, forcing the Government to take exceptions, such as the use of the Armed Forces, or curfews. . .
In radio statements last Thursday, Noboa assured that the war against organized crime “has a cost”, which is why these types of economic measures were expected to make available resources with which to fight from the State. All natural and legal persons who reside and carry out economic activities in Ecuador, both public and private entities and foreign entities that operate in the country, are subject to the provisions of this law.
