President Daniel Noboa confirmed today, Friday, February 23, in interviews with the media, that VAT will be 15% from April 1 and has already signed the respective presidential decree.
Regarding the new tax item, there were contradictions, since the Minister of Finance, Juan Carlos Vegahad already announced on February 21 that “the tax would rise to 15%but then it was spread that he was wrong and that it would remain at 13%.
For this reason, the president explained that the “The country’s situation warrants an increase in VAT due to flooding due to intense rains, delays in payments to municipalities and prefectures, among other problems” and that the tax will go down depending on the evolution of the country’s economy.
“Let’s hope that before the next period, which would be ideal, the economy has to reactivate to lower the VAT.”said Noboa.
This decision comes after the application of the Law to confront the Internal Armed Conflictwhich specifies that “the increase in VAT and other taxes establishes that VAT will be 13% permanently, but it may increase up to maximum 15% when the President considers it necessary, following a favorable report from the Ministry of Finance,” says the official document.
The entry into validity of this law It will be from the beginning of March with VAT of 13% and from April it will be 15%.
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