Ecuador VAT rise to 14%
Ecuador has announced plans to increase its VAT rate from the current 12% to 14%.
The rise is part of a package to help fund the rebuilding of part of the country following the recent earthquake. This has led to damage estimated at up to $3 billion. This comes on top of falling government revenues from the sharp decline in global oil prices.
The VAT rise is only scheduled to be in a place for 1 year.
To pay for the repair of infrastructure (roads, bridges etc.), the VAT rise will come with a new bond issue and other tax increases.