Today New Taxes will Be Defined in 4 sectors

Today, the Cabinet will discuss in Baeza, Napo province, the proposal of President Correa: Reinstate the Special Consumption Tax (SCT) to alcoholic beverages, cigarettes and, cellular calls; as well as the VAT increase on medicines.

The director of the Internal Revenue Service (IRS), Carlos Marx Carrasco, assures that all the funds collected through taxes will be used to improve the budget for the Public Health Network.

In the proposal two Ministries are working: The Ministry of Health that is watching the creation of the new tax on cigarettes and the Ministry of Economic Policy which manages the proposal of VAT on medicines. Each institution must submit the scientific and health impact that higher taxes would have, after this the IRS will analyze the impact that the new taxes would have on supply and demand.

Carrasco recognized that the IRS has the responsibility to give the information of the fiscal impact and cost on jobs to the President. “It may affect the occupancy levels and generate unemployment; we must analyze the proposal, because the actions are not taken yet.”

President Rafael Correa will be who remit to the National Assembly the draft reform of the Tax Law with the new proposals.

Source: El Universo