The government of Ecuador's President Daniel Noboa has asked parliamentarians to consider an increase in value-added tax (VAT) to finance efforts to combat criminal gangs, at a time when the country's Armed Forces have increased operations in areas violence this Friday (12).
The dramatic increase in violence this week, including the break-in of a TV station, the taking of 178 prison staff hostage by inmates and the kidnapping of police officers, appears to be the gangs' response to Noboa's plans to tackle the dire situation of security.
Noboa, who took office in November, declared a state of emergency and classified 22 gangs as terrorist organizations.
Three hostages were freed with the help of the Catholic Church and the Red Cross, the SNAI prisons agency said late on Thursday. Another 21 detainees in Cuenca prison were cared for by the Red Cross, he added.
The government said operations are underway to free hostages held in at least seven prisons, but information about their situation is scarce, prompting criticism from their families and unions.
Security has worsened alongside severe economic problems, as the country faces internal liquidity problems, limited external financing options and tens of billions in external debt.
Noboa's tax proposal, sent to the National Assembly on Thursday night (11), would increase VAT by three points, reaching 15%. The bill is classified as urgent and must be analyzed within 30 days.
Lawmakers, in a rare show of unity, have already approved two urgent proposals from the Noboa government, another tax bill aimed at increasing youth employment and a law aimed at attracting investment in the electricity sector.
“The current security crisis in Ecuador highlights the urgency of increasing potential tax collection for the State,” Noboa said in a document shared with the Assembly. “The increase in VAT will give the State a constant source of income.”
The measure could raise more than $1.3 billion a year and would take effect in March.
The resources would be used to finance weapons and equipment for security forces and improvements to the penitentiary system, as well as payments owed to regional governments, according to the document.
Ecuador ended 2023 with a fiscal deficit of more than 5.7 billion dollars, according to the government. The country's external debt totals more than 47 billion dollars.
On social media, the military said it had intensified operations in several provinces, arresting gang members and seizing weapons.
The attorney general's office said three people were being detained on charges of planning an attack on the head of the National Police, without providing further details. The police did not comment on the matter.
Noboa's government attributes the deteriorating security situation to increased drug trafficking through Ecuador, which borders cocaine-producing Colombia and Peru and has become an important drug shipping point.
On Thursday (11), Noboa presented details of two new high-security prisons he has committed to building to hold top gang leaders.
The country will ask people entering the country through the borders with Peru and Colombia to show their criminal records during the state of emergency, the government said.
Source: CNN Brasil
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