Ecuador's Congress rejected with 83 votes President Daniel Noboa's bill to increase the Value Added Tax (VAT) from 12% to 15% to finance the war against organized crime. The plan was presented last month by the president.
The National Assembly, made up of 137 members, held two debates on the topic and decided, definitively, to reject the document, this Tuesday (6).
According to the Ministry of Economy, the increase in VAT would generate US$1.3 billion (R$6.4 billion) per year for the State to dedicate to the security area. The country is facing a serious “internal armed conflict”, declared by the government after a wave of violence took over large Ecuadorian cities.
The Legislature's decision was vetoed by the president, who presented a new document establishing a 13% VAT, warning that he could change the tax rate again. “In no case may the tariff be lower than 13% nor higher than 15%, except for the exceptions provided for in this law,” the presidency said in a statement.
Based on the new process initiated by the country's president, Congress has 30 days to agree to the veto or maintain its initial decision.
Since the beginning of the state of emergency in Ecuador, at the beginning of January, more than six thousand criminals have been arrested, according to police authorities.
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