2024-03-28 19:01:30
Last Friday, February 23, the president Daniel Noboa confirmed that the VAT will be 15% since April 1. The President explained that the situation of the country warrants the increase in VAT due to flooding due to intense rains, delays in payments to municipalities and prefectures, among other problems.
The president said he hopes that before next period ends the measure“It would be ideal, the economy has to reactivate to lower the VAT,” he mentioned. It is that the Law to confront the Internal Armed Conflictwhich includes the increase in VAT and other taxes, establishes that the VAT will be 13% permanently, but it may increase up to maximum 15% when the President considers it necessary, following a favorable report from the Ministry of Finance.
The entry into validity of this law It will be from April 1 of this year, when Ecuadorians will have an increase in the Value Added Tax (VAT) rate from 12% to 15%, a measure that will raise prices on different products and services such as fuel, cell phones, streaming platforms , clothing, vehicles, among others.
Given the situation, it is necessary to take into account some measures so that the economy at home is not affected, especially in the midst of a marked crisis that hundreds of families are already facing due to the serious financial and social situation in the country.
In addition, it should be mentioned that according to data from Asobanca, the rate of people who have stopped paying their debts has grown in the consumer segment, going from 3% to 4.7%, which shows, among others, the decrease in consumers’ ability to pay, due to the effects of the pandemic, lack of employment or increased levels of insecurity.
In this stage, “It is recommended that consumers remain calm and cautious when investing their money, planning their expenses in an orderly manner, in order to maintain healthy finances. In times of crisis, it is essential to adjust your pocket a little, get out of debt and aim for savings”recommends Esteban Correa, deputy manager of a financial institution.
From the business sector, Miguel Angel Gonzalezand the economic analyst Walter Spurrierexplain that if goods and services increase throughout the productive chain It will put a brake on the Ecuadorian economy.
González, president of the Ecuadorian Business Committee, explains that the impact is inevitable, and there will be companies hit which will have an impact on the job offer.
For Spurrier, the cost of living is going to rise, “in general, we are going to feel a tightness in the economy,” says the economic consultant.