Posted On 21 Apr 2016
The Value Added Tax (VAT) will rise from 12% to 14% for over one year, said Rafael Correa, president of Ecuador, Wednesday night, April 20, after assessing the 7.8M earthquake damage that affected the provinces of Esmeraldas and Manabi.
These are measures he announced:
– An increase of 2 points to the value added tax (VAT), ie from 12 to 14% for one year.
– Contribution of 0.9% of assets of natural persons only if it´s more than $ 1 million worth.
– Contribution, only once, of extra 3% of profits to help earthquake victims.
– The contribution of one day’s wages for those earning more than a thousand dollars a month is established (“If you earn 1,000, you will have to contribute only with the proportional wage of one day of a month, if you earn 2,000, you will have to contribute for two months, even those who earn more than 5000, they will have to contribute for five months,” said the president). The salary ceiling is 5,000, one day of salary per month.
During the announcement, that was broadcast on national television, the president was accompanied by the head of the National Assembly Gabriela Ribadeneira, the president of the National Electoral Council Juan Pablo Pozo and the president of the National Court of Justice Carlos Ramirez Romero.