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The Ecuadorean Parliament will vote on whether to implement increased taxes Thursday that will go to help the country rebuild after the devastating earthquake that rocked the country last April.
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The Ecuadorean government has calculated that the recovery costs will be between US$3 and US$4 billion, with many government buildings suffering significant damage.
As a result of the massive economic and physical destruction caused by the earthquake, Ecuadorean lawmakers will vote on a series of tax measures that aim to help finance the country's rebuilding efforts.
The increase would include measures such as a year-long increase of two-points to the Valued Added Tax or VAT. However, medicines and 90 percent of food products are exempt from the VAT. Ecuador's VAT tax is currently 12 percent, making it one of the lowest in the region.
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Under the proposal, Ecuadoreans earning more than US$1,000 will be required to give up one day of their salary for one month. Individuals earning more than US$2,000 will be charged one day per month for two months. The tax initiative will be calculated on a sliding scale based on income.
Additionally, a one-off tax of 0.9 percent will be imposed on people with wealth of over US$1 million.
All the money generated by these proposals, which is expected to be around US$1 billion, will be allocated to the reconstruction of the coast.
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