Ecuadorian Government Withdrawals Parts of Tax Reform, Electrical Tariffs

According to LaHora.com.ec the government has decided to backtrack on an issue of their tax reform and review the tax on cars. The basis of electrical consumption for subsidy elimination was changed as well. Also, the green tax is under review. The business community believes that these moves are politically motivated. President Rafael Correa stated yesterday that the bag tax was not going to be included due to the cost for the government. At the same time, the government confirmed that the green tax on cars was going to be reviewed and ‘refined.’ The Electricity Ministry stated that the consumer base able o eliminate the subsidy on electricity will be households on the coast using 700 kw/h per month, only between May and December. The 500 kw/h base will remain for all other users in the nation. Businesses view this reversal of events as a show to national exporters. http://translate.google.com/translate?hl=en&sl=es&tl=en&u=http%3A%2F%2Fwww.lahora.com.ec%2Findex.php%2Fnoticias%2Fshow%2F1101157762%2F-1%2FGobierno_desiste_de_reforma_tributaria_y_tarifas_el%25C3%25A9ctricas.html