Ecuador to Increase Taxes to Fund Earthquake Reconstruction

Following the recent devastating earthquakes in Ecuador, President Rafael Correa has announced that he will ask National Assembly to approve a number of tax measures to fund reconstruction. The measures include:

• A one-year increase in the value added tax rate from 12% to 14%;
• A one-off surtax of 3% on corporate tax;
• An employee contribution equal to one day's pay per month for each USD 1,000 earned per month, up to five day's pay over five months; and
• A one-off tax of 0.9% on individual with…