President Daniel Noboa announced a few moments ago that the planned increase in the Value Added Tax (VAT) from 12% to 15% will come into effect as of April 1 of this year.
Within the framework of the need to generate more resources for the State, the president gave the advance in an interview given to El Universo and Radio City, in which he addressed the tax increase posed by the permanent increase of one point and two more temporarily. , as long as the Government considers it necessary.
«VAT will start at 15%. We have 60 cantons flooded, we have all the municipalities and prefectures with delays that call every day,” said Noboa, who declared a state of “internal war” against organized crime on January 9 of this year.
As reported Glance “the law to confront the armed conflict and the economic and social crisiswithin which the VAT increasewill come into effect in the first days of March, after compliance with the 30-day period for the partial veto that the president applied to the regulatory body to be executed after its review by the Legislative» indicated the media.
“We are seeing how to resolve non-payment from the previous Government. For that we need resources. We do not know how long the rains will last, it is estimated that 80 or 90 more days…». In addition, he indicated that the percentage review will initially be carried out every six months.
When asked about the Estimated time it would take before the VAT percentage is reduced to 14 or 13 percentthe president said “we hope that before the next period, which would be ideal, the economy has to reactivate to lower (said tax).”
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