*Ecuador’s national assembly has rejected a proposal from the government led by President Daniel Noboa to raise the value-added tax (VAT) rate from 12% to 15%. The VAT hike was proposed in a wider bill aimed at boosting revenue to tackle the country’s security crisis. The bill was voted upon article by article, and a slimmed down version was eventually approved. However, the VAT increase, which was the central pillar of the bill, was rejected with 83 votes against, 43 votes in favour, and nine abstentions. Noboa partially vetoed the version of the bill approved by legislators, which includes tax raises on the banking sector. In a statement announcing the veto, Noboa called on legislators to approve a smaller increase of 1 percentage point to the VAT rate, raising it to 13%.
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LatinNews Daily - 07 February 2024
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