Ecuador: Proposed tax increases on cigarettes, liquor, soft drinks may raise 300 million dollars

CRE.com.ec reported Government prepares project to raise taxes on cigarettes, liquor and sugary drinks

Morona Santiago.- President Rafael Correa, said in his work report No. 467 that his government is preparing a package of reforms to cope with falling tax revenues. This includes raising taxes on cigarettes, alcohol and sugary drinks.

They are 300 million who are looking to raise with this new reform package, the increase is that cigarettes pay a little more, that alcoholic beverages pay a little more and sugary drinks, which are even harmful to health.

“And in that package will present a reform for the allocation of the municipalities , ” said the president.

Correa said that currently the legislation to fulfill assignments to autonomous governments (GAD) is very “rigid” because the executive can not change the assignment budgeted, if fiscal execution lower oil prices and tax revenues .

In days gone by Finance Minister Fausto Herrera, he had said he needed to make an adjustment to the budget this year, 800 million. READ ARTICLE

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