Ecuador’s President Noboa Secures VAT Hike Despite Legislative Impasse

• Ecuadorean President Daniel Noboa wins a legislative victory by raising value added tax (VAT)
• Lawmakers were unable to decide whether or not to allow the VAT hike
• Noboa argues that the increase in VAT will help finance his security offensive against criminal gangs
• A majority of lawmakers initially voted against raising VAT to 15% from 12%
• Noboa presented a partial objection to push for a permanent increase to 13% and the ability to raise it to 15% when needed
• The legislation will proceed despite lawmakers’ inability to vote against Noboa’s objection
• Noboa aims to take an extra $1.1 billion per year with the VAT hike to strengthen security forces against organized crime.

Source: investing.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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