Given the lack of legislative support for a bill seeking to increase the value-added tax (VAT) by three points — to keep it at 15% — now President Daniel Noboa discussed the amendment of the proposal and the implementation of a “Mixed VAT”.

“A good economic signal for multilateral (organisms) is to have a mixed VAT, I believe. It would be one permanent point and two temporary points. Seems like a good option to me; “It increases revenues,” the president explained in an interview with digital media on Tuesday, January 23 afternoon. Post.

According to the president, VAT should permanently increase to 13 percent, and temporarily to 15 percent.

He also indicated that another mechanism for obtaining funds for the treasury would be through the “proper” targeted fuel subsidies. “In order not to affect people, public transport, taxi drivers, transport of heavy goods, but let’s do it so that the state stops bleeding money.”

He stated that currently subsidies are close to 4000 million dollarswhich are equivalent to the amount of the fiscal deficit.

“I think that consumption (subsidies) should be reduced by at least 25%.. I think it is reasonable and it would not affect the people, but it would affect the areas and segments that can pay for it,” Noboa commented, noting that more employment is also needed to improve consumption.

“We have to work hard and they do not limit the creation of jobs“, emphasized the president, repeating that special attention should be paid to the employment of young people, since currently unemployment and underemployment of that segment of the population exceeds 55 percent at the national level.

Reply to Leonidas Iza, President of Conaia

Regarding subsidies, Noboa reacted to the questions of Leonidas Iza, President Conaie, who expressed his rejection of a possible increase in fuel prices, as this would raise product prices.

In this sense, faced with a possible scenario of paralysis – such as that of June 2022 -, the president said that “it is absurd to have a national strike in a state of emergency; “It opposes the military.”

“At this moment there is no reason to strike. I am the President of the Republic. I invite leader Conaie to participate in 2025, to run for president. If he wants to introduce economic measures, let him do it (run for president in 2025). He is angry because he wants me to impose a dialogue table on him so that he can tell me how to manage the country’s economy; I say, ‘No, thank you.’ I can sit down and talk, I am completely open to all social groups in the country, for dialogue; But that sense of imposition seems inappropriate to me. I think that Mr. Iza should talk to the minister of the government (Mónica Palencia); to talk, not to impose”, reacted the head of state.