- Ecuador’s stable perception has weakened due to an increase in organised crime.
- The government aims to mitigate this rise in organised crime.
- There is a potential standard VAT rise from 12% to 15% in Ecuador.
- The surplus revenues generated from the VAT increase will address the rise in organised crime.
- The proposal is currently with the National Assembly and could be effective from 1 March 2024.
- Ecuador’s current VAT rate is one of the lowest in the region.
- Increasing the VAT rate will bring Ecuador in line with its neighbouring countries.
Source: tungstenautomation.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.
