Income taxes in Ecuador will increase by 8%

Fausto Ortiz

The scheme hopes to increase $ 14,950 million for taxes in 2014. This was revealed by the figures shown on last weekend by the Ecuadorian President Rafael Correa during his Saturday.

This amount exceeds by $ 1,208 million more than last year ($ 13,742 million), according to the figures presented by Correa, this means that the revenue will rise by 8.79%.

However, if we compare the figures with the current size of the economy, it is understandable that the collection will be a little lower than last year, relative to gross domestic product (GDP).

According to Fausto Ortiz, former finance minister of the regime in 2013, the taxes accounted for 15.3% of GDP and by 2014 will account for 15.12%.

Ortiz explained that the figures presented by the leader of the regime corresponding to the document budget and at the time of execution, the revenues could be higher. He added that in recent years, budgeted projections by the SRI have been less than the actual revenue.

The Legislative Board (CAL) will receive Correa’s proposal and subsequently directed to the respective committee. The legislature has a month to discuss the issue and make sure that the figures do not contradict the Constitution.