In addition, the creation of a wealth tax that could raise USD 1 billion annually
Manuel González, one of the new members of the Government’s Advisory Council on Economic Matters, published a study on the current situation of the Ecuadorian economy.
This document proposes several adjustments that the National Government should implement to face the national and global financial crisis.
Among the changes González suggested are the implementation of a wealth tax that is paid by the highest decile of the population, with this, USD 1 billion could be raised during 2020, according to his projections.
Likewise, he indicated that, although Ecuador is one of the countries with the highest taxes in the region, the Government should increase VAT from 12% to 14%. This would help increase the tax collection by an additional USD 1 billion.
Another of the measures proposed by the economist was the gradual reduction of wages in the public sector, especially those of the Armed Forces. According to the data published in the study, the salary expenditure of almost 500,000 public officials in the country amounts to USD 10 billion annually.
González also explained that it would be pertinent to create an anti-corruption structure that could allow Ecuador to save about USD 1.3 billion a year, considering that public investment is at least about $ 13 billion a year and that presumably 10% of that amount. it is lost through corruption.
COMPLETE STUDY
Diagnosis of the Ecuadorian economy, adjustment proposal and a reflection
Be the first to comment