Quito, (Ecuador) – Ecuadorian President, Rafael Correa, has announced a temporary tax hike, to raise funds to help rebuild the Country.
He said on Friday in Quito (Ecuador), that this has become necessary as part of the powers granted to him by the current state of emergency, the damage that would cost billions of dollars to repair.
Correa said the country’s sales tax would rise from 12 per cent to 14 per cent.
He explained that people with worth over 1 million dollars would see a one-time 0.9 per cent tax on their fortunes.
“Those making over 1,000 U.S. dollars a month will be taxed a day’s wage and people with salaries of over 5,000 dollars will be taxed five days of wages.
The president said the reconstruction would be a challenge for Ecuador, with the IMF predicting a 4.5-per cent GDP contraction for the country in 2016 prior to the earthquake.
Correa said a massive campaign was launched on Wednesday, seeking funds to help the thousands of people who were displaced or lost their homes in the 7.8-magnitude earthquake few days ago.
He said the death toll from the earthquake that devastated parts of the Ecuadorian coast has reached 587, including 27 foreigners.
“The number of injured stands at 5,733, with 163 reported missing.
“A total of 539 victims have been claimed by their families, while 48 remain unidentified.
Correa said among the 27 foreigners killed in the quake, which hit late Saturday, 10 are Colombian, six Cuban, and two Canadian.
He added that another two from the Dominican Republic, two British, and one each from Italy, Germany, France, and Ireland.
Correa said one has yet to be identified.
Meanwhile, Gabriela Rivadeneira, President of the National Assembly, said that a campaign launched by the assembly had already generated 377,197 dollars.
Ecuador has launched a campaign to gather relief funds urgently needed for its quake-devastated areas, as the official death toll has now reached 587.
Stephen O’Brien, the UN Under-Secretary-General for Humanitarian Affairs, also visited the disaster zone and said he would urgently seek international donations to help the recovery. (Xinhua/NAN)
