2024-07-03 14:25:43
Ana Cristina Avilés, Deputy Minister of Economy, said that there is no reason for various transportation services in Ecuador, such as public, cargo, heavy and school, to increase their rates.
He explained that the measures taken by the Government, including the adjustment of subsidies and VAT, will keep inflation under control, similar to what it would have been without these actions.
He stressed that any increase in prices for services or products following the targeting of fuel subsidies would be speculative and must be controlled. According to the Government’s studies and projections, these measures will not negatively impact the poorest population, and transporters will be protected by a compensation mechanism.
The vice minister explained that the compensation scheme is designed to ensure that the amounts arrive on time each month. “The monetary transfer will be made on the same day that the decision is made. Subsequently, it will be made between five and seven days after Petroecuador announces the price of oil,” she explained.
He confirmed that the resources obtained from the targeting of subsidies for Extra and Ecopaís gasoline will be redirected to protect the poorest citizens through vouchers and strengthen the social protection scheme. In addition, they will be used to provide social services and care for sectors forgotten by the state.
Finally, he indicated that a tax reform is not expected in the coming months in Ecuador. “These are the two measures that the Government has included in its economic plan and that we have presented to the international community to access greater financing, avoiding the need to take additional measures,” he concluded.