Last Thursday, October 25, the Organic Law of Redistribution of Social Spending project was sent under an urgent economic nature, then Friday 26, approved by the Board of Legislature (CAL for its Spanish acronym) and later transferred to the Commission of Economics.
The rule states the charging of 12% VAT to financial services, for example, the collection of transfers abroad or issuing checks.
On Saturday, during the usual national broadcast, President Rafael Correa said that the weight of the new tax should be taken only by banks.
However, financial experts say that the banking users are then ones who will be affected by the new law due to the service restrictions as whereas the violation of their right to privacy.
Julio Dobronsky, executive director of the Association of Financial Institutions of Ecuador, disagrees with Correa and ensures that there is illegality in the whole thing, because the Tax Equity Act clearly states that whoever assumes the cost of VAT is the final consumer, not the service deliverers. (MZ)