Businesses Reject Government Tax Hikes, Ask Ecuadorian Government to Save

According to Expreso.ec, the government has placed a tax on bottles and plastic bags in order to reduce their use and benefit the environment. Blasck Penaherrera, president of the business committee of Ecuador criticized the tax increase stating, President Rafael Correa’s intension is not to help the environment, but to finance the public budget. The Ministry of Finance says that the tax is placed to promote renewable resources and encourage recycling. Reportedly, the government is considering placing an annual tax on all vehicles including hybrid cars, while raising taxes on cigarettes and alcoholic beverages. These changes will benefit the health system by raising revenue, states the Ministry of Finance. Penaherrera is critical, believing that the government should spend less rather than raise taxes. The Ecuadorian government’s budget is benefited by the high oil prices since the country produces over 500,000 barrels of crude oil per day.Read Article