The President of the Republic, Daniel Noboa, presented to the National Assembly a new urgent proposal of the economic law proposing to increase the value added tax (VAT) from 12 percent to 15 percent in order to face the internal armed conflicts, social and economic crisis.
With this, the Government foresees an increase in collection of 1.306 million dollars, it was stated in the documentation that was submitted to the Secretariat of the Assembly on Thursday, January 11, 2023, just before midnight.
The project entitled Organic law for dealing with internal armed conflict, social and economic crisis refers only to VAT.
Article 1. Object. The purpose of this law is to oppose the armed conflict, the social and economic crisis that Ecuador is going through and that has worsened the difficult fiscal situation.
Article 2. Field of application. The provisions of this law apply throughout the state territory.
Article 3. Subjects. All natural and legal persons, public and private, domestic and foreign, who reside and/or perform economic activities in Ecuador are subject to the provisions of this law.
Article 4. Purpose. The purpose of this law is to collect taxes in order to fulfill the obligations of the state in the implementation of plans, programs, actions and public policies for the social sectors of Ecuador, as well as to stabilize public finances, redistribute income and solve the need for resources due to the internal armed conflict and serious social and economic crisis through which Ecuador passes.
General disposition
Reformatory provisions
Final disposition
Source: Eluniverso
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