ECUADOR’S NEW TAX AIMS TO IMPROVE WEALTH DISTRIBUTION
Now this is a tax plan to get behind! But, it won’t be long before the opposition and the US begin a frontal attack.
New Tax Act in 2008 in Ecuador
Quito, Dec 29 (Prensa Latina) A new tax act aimed at improving wealth distribution, guaranteeing more equity and reactivating national production will come into force in 2008 in Ecuador.
It is the first law approved by the Constituent Assembly since it was established on November 29 by 130 members, including 80 from the Alianza Pais movement.
The Tax Equity Act was approved by 90 assembly members from Alianza Pais and other minority groups that back the process of reform in Ecuador.
The 23 votes against the act were cast by the opposition Social-Christian Party, Institutional Renovating Party, UNO and Patriotic Society.
The act will come into force on January 1, 2008, after being published in the Official Record this weekend.
Ecuadorian President Rafael Correa confirmed that the new law, which exempts 85 percent of the population from taxes, would minimize tax evasion, promote employment and production, and regulate an economy that was in chaos.
The Tax Equity Act, which was criticized by the opposition, toughens the sentences for tax evasion, including prison.
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