Ecuador significantly reduces many taxes
2023.01.11 00:43
Ecuador significantly reduces many taxes
By Ray Johnson
Budrigannews.com – According to President Guillermo Lasso’s announcement on Tuesday, Ecuador will reduce overall value-added tax on specific shopping days and reduce taxes on items like alcohol and capital sent abroad.
In a televised address, Lasso stated that capital sent abroad will be taxed at 2% this year instead of 4%. This will lower the cost of imported goods like machinery and encourage foreign investment.
Lasso, a conservative former banker, added that during four long weekends this year, sales tax will be reduced from 12% to 8%, and taxes on sugary drinks, beer, alcohol, and other items will also decrease by an unspecified amount.
He stated, “This is good news for everyone, the state is putting about $140 million in the pockets of citizens” as a result of these actions.
The COVID-19 pandemic has had a negative impact on Ecuador’s economy, and Lasso has pledged to help it recover.
This month, he signed a new trade agreement with China and restructured his country’s debt with the Asian nation. However, despite protests against his government, oil production has not reached the promised new heights.
Lasso added that in an effort to assist in the fight against a wave of crime, taxes on guns and ammunition, which can only be legally purchased by state entities and private security companies, will be drastically reduced from 300 percent to 30 percent.
He stated, “In this manner, we will facilitate the legal provision of equipment, which is so essential for the fight against crime.”
Ecuadorians are worried and angry about the rise in crime and violence in the streets and prisons. Gangs involved in drug trafficking are blamed by the government for the violence.
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