Noboa Government will increase the IVA tax to 15%

Juan Carlos Vega, Ministry of Finance and Prices of Ecuador, reports about the increase in the Impuesto de Valor Agregado (IVA), which will rise to 15%.

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It was anticipated that the IVA increase would only be from 12% to 13%, this being controversial for citizens.

The justification given by Vega for this increase was to help organizations in the fight against criminal gangs and insecurity in the country.

The new tax will come into effect next April. But first the government will make a report explaining the need for this IVA increase.

The time in which the new measure will be in force is a decision of President Daniel Noboa himself.

On the subject, the president explains that the tax will not affect the majority of Ecuadoreans.

The government aims to collect 1,306 million dollars per year.