ECUADOR-POLITICS/CORREA Ecuadorean President Rafael Correa denounces protests aimed at new inheritance taxes

Record ID: 151460

  • Title: ECUADOR-POLITICS/CORREA Ecuadorean President Rafael Correa denounces protests aimed at new inheritance taxes
  • Date: 16th June 2015
  • Summary: QUITO, ECUADOR (JUNE 15, 2015) (REUTERS) WIDE EXTERIOR OF ECUADOREAN CARONDELET GOVERNMENT PALACE SUPPORTERS OF ECUADOREAN PRESIDENT, RAFAEL CORREA, WAVING FLAGS AND CHANTING SUPPORT CORREA ARRIVING ON BALCONY AND GREETING ECUADOREAN NATIONAL ASSEMBLY PRESIDENT, GABRIELA RIVADENEIRA CORREA STANDING ON BALCONY WITH RIVADENEIRA AND VICE PRESIDENT JORGE GLAS CORREA WAVING AT
  • Embargoed: 1st July 2015 13:00
  • Keywords:
  • Location: Ecuador
  • Country: Ecuador
  • Topics: General
  • Reuters ID: LVA3O3LBUFZGDN2AQ46K357WV6BF
  • Aspect Ratio: 16:9
  • Story Text: EDITORS PLEASE NOTE: AUDIO AS INCOMING
    President Rafael Correa returned to his country of Ecuador on Monday (June 15) to speak out against demonstrators in the South American country rallying against his bid to expand inheritance taxes.
    Critics have said Correa's proposal is a move towards Venezuelan socialism and a money grab for the government. He says the law is designed to avoid accumulation of wealth in the Andean country and instead redistribute it. According to Quito, the tax plan will only affect two percent of the country.
    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.
    The programme has incited protests over the past week in Quito. Protesters have scuffled with police dressed in riot gear.
    Speaking from the Carondelet Government Palace in Quito upon returning from a trip in Europe, Correa exhibited a confidence amid the mounting protests. He addressed thousands of supporters, many of whom were waving the green flag of his Alianza Pais movement.
    "A recall of the president can be achieved through democratic means. Come on, opposition, instead of using violence, force, use the Constitution. Let's open the recall process, and I will defeat it one thousand and one times," he said.
    Correa's government has faced domestic challenges before. Back in 2010, Correa's bid to restructure government promotion and raise scales resulted in violence leaving ten people dead. Correa himself was assaulted and went on to term the showdown an attempted coup d'etat.
    Speaking in Quito, Correa raised the alarm over a potential coup attempt.
    "Those people are not fighting because they believe the laws are good or bad. They are fighting because of a conspiracy. There are those in the heart of the opposition want to achieve what they couldn't accomplish at the ballot box. No one should cheat. There is a conspiracy underway - the conservative restoration, with whatever amount of money available, making use of violence in an attempt to wear down the government, delegitimise it, and if possible, pull off a coup d'etat," he said.
    Correa has said if the measures are shown to hurt poor and middle class Ecuadoreans, he would remove them.
    The National Assembly will debate the reform for 30 days before voting on final approval.
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