ECUADOR-POLITICS Tax plan in Ecuador draws ire of protesters

Record ID: 150837

  • Title: ECUADOR-POLITICS Tax plan in Ecuador draws ire of protesters
  • Date: 10th June 2015
  • Summary: QUITO, ECUADOR (JUNE 8, 2015) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** VARIOUS OF ANTI-GOVERNMENT PROTESTS IN FRONT OF HEADQUARTERS OF ALIANZA PAIS PARTY, WHICH IS LED BY ECUADORIAN PRESIDENT RAFAEL CORREA, AND POLICE MAINTAINING ORDER (SOUNDBITE) (Spanish) 38-YEAR OLD ANTI-GOVERNMENT ECUADOREAN PROTESTER, ALEX CANELOS, SAYING: "We are tired of so much corruption
  • Embargoed: 25th June 2015 13:00
  • Keywords:
  • Location: Ecuador
  • Country: Ecuador
  • Topics: General
  • Reuters ID: LVA4OHY74LSN0PFZCX5Y6B6CN2XH
  • Aspect Ratio: 16:9
  • Story Text: EDITORS PLEASE NOTE: EDIT CONTAINS MATERIAL THAT WAS ORIGINALLY 4:3
    Heated protests in the streets of Quito this week to denounce leftist President Rafael Correa's moves to increase a tax on inheritances by up to 77 percent.
    Protesting outside the headquarters of Correa's left-leaning Alianza Pais party, critics dubbed Correa's 'Law of Wealth Distribution' a move towards Venezuelan socialism and a money grab for the government.
    "We are tired of so much corruption, that they (the government) stick their hands in our pockets and take everything we have. The taxes, it's striking how much taxes have gone up," said protester, Alex Canelos.
    The reform is currently being debated in Ecuador's National Assembly where Correa's government has a majority. The law proposes the tax base on inheritances to start at $35,400 from the original $68,800. For direct heirs, the tax rate would be between 2.5 percent to 47.5 percent but indirect heirs or companies could face a tax fee of 77.5 percent on their inheritances.
    Lawmakers from Correa's party have defended the new law saying official costings show the reform will not be a heavy financial burden.
    "What's truly missing (in the debate) is information. There's a strategy coming from powerful sectors and this strategy is to have the lower class sectors and middle class sectors go out and defend the interests of the rich and the cheaters. And with this, there is a lack of better information, there is a lack of what people can access. Now mechanisms have been established so that people can see the projections. In these projections you can see that it's not like what they've reported. People can see for themselves that, for example, if you have an inheritance of $40,000 you will pay $115, if you have a inheritance of $50,000 you will pay $365," said Virgilio Hernandez from Correa's Alianza Pais party.
    The National Assembly will debate the reform for 30 days before voting on final approval.
    Opposition lawmakers have called on the public to keep up protests.
    "Citizens know that they have 30 days and if in 30 days their message is not clear and they don't mobilise themselves so that the president understands that the people of Ecuador are ready to defend their heritage up until the end. If this measure is not removed (then) this will be a political struggle in which only one people will be left standing, either the heritage of the people or the president of the republic," said opposition lawmaker, Ramiro Aguilar.
    Correa was re-elected to presidency in 2013 vowing to tackle poverty that will allow him to deepen his socialist programme.
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