Daniel Noboa says that his tax reform will not include raising taxes

The market for now is cautious regarding Noboa’s first announcements. This is reflected in the country risk, which fell 10 points.

Given the expectation of an eventual tax reform in the next government, the elected president, Daniel Noboa, clarified in his dialogue with the investment bank Barclays, that this project does not include raising taxes.

To the executives of this financial group, dedicated to consumer and investment banking, Noboa assured that he will fulfill one of his campaign offers: reduce taxes. The meeting took place on the morning of November 7, in New York.

According to the president-elect, this reduction will be an incentive for “companies to hire more talent and Ecuadorian labor.”

Another element of the future tax reform in Ecuador will be the reduction of the Value Added Tax (VAT) on construction materials , from 12 to 5%.

For Noboa, the decrease will allow the construction sector to be reactivated, one of the sectors that generates the most jobs in the country.

The market for now is cautious regarding Noboa’s first announcements. This is reflected in the country risk , which fell 10 points, closing on November 6 at 1,749 points.

At the meeting with Barclays, Noboa was accompanied by the newly appointed Minister of Economy, Sariha Moya, and the delegation of other future ministerial officials who traveled to the United States.

While the bank was represented by its directors, Alejandro Arreaza and Luis Rivases.

During his tour of the United States, Noboa has also met with the World Bank and the International Monetary Fund (IMF). With this last multilateral, the president-elect spoke about a ‘ nine-month bridge loan‘, to reactivate public investment.

In addition to a tax reform, the future government plans to present another project to the new Assembly for the energy sector.

Meeting with investors

The president-elect met with nearly a hundred investors, this November 7 in New York, to announce his government plan.

The event was organized by the Americas Society/Council of the Americas and had the
participation of representatives of companies from sectors such as mining , finance, technology, construction, energy and real estate.

Noboa shared his plan to give security to the country and stability to companies so that they decide to invest and help create jobs, according to a statement from his communications team.

“The critical thing is to attract a lot of capital, to create jobs. That is what Ecuador has lacked to be able to progress and stop unemployment,” said Jose María Barrionuevo, executive president of Brighthill Capital, an investment advisory firm.