The Ecuadorian government announces measures to correct “serious errors of the economy”

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Lenín Moreno, president of Ecuador. (RODRIGO BUENDIA / AFP / Getty Images)

(CNN Spanish) - New economic measures announced on Tuesday in Ecuador the president of Ecuador, Lenín Moreno, in order to boost economic growth and correct what he described as "serious errors of the Ecuadorian economy."

The president indicated that there will be no increase in value added tax (VAT) and that it will remain at 12%. This was one of the ads that generated more expectation in the population.

Moreno also announced the payment of contributions from certain companies, the release of the subsidy for extra gasoline and diesel, increase of bonds as a compensation measure, reduction of tariffs for the purchase of machinery, abolition of taxes on the importation of technology , among other measures.

Moreno asked for an “additional effort” to companies that receive income for more than 10 million dollars a year. These companies will pay - for 3 years - a special contribution for safety, education and health.

Regarding subsidies, the president indicated that the country allocates more than 1.3 billion dollars a year in subsidies to diesel and extra gasoline. He said that it is a measure that exists in Venezuela and that "it is not the best example to follow." Therefore, he announced that he signed a decree to release the price of extra gasoline and diesel to combat, in addition, the problem of smuggling.

As a compensation measure, the government will add 300,000 families to the million who already receive different bonds. They will receive an additional $ 15 per month.

Moreno announced the reduction of tariffs for the purchase of agricultural machinery, banana production, technology importation and vehicles under $ 32,000.

As for labor reforms, he announced a new form of employer retirement, occasional contracts in the public sector will resume with 20% less pay and annual vacation days will be reduced from 30 to 15 days.

At the end of his pronouncement to the Nation, President Moreno emphasized that this decision is made thinking of the next generations, and not the next elections. He added that they are delayed decisions for decades and that many of his opponents and critics "are not going to say it in public, but they say it in private."

Lenin Moreno