Correa to send new capital gains legislation to the National Assembly

President Rafael Correa says he will submit new legislation to increase capital gains taxes to the National Assembly in the coming days.

President Rafael Correa

Correa withdrew a capital gains proposal and another to increase inheritance taxes in 2015 following widespread national protests.

Critics claimed the taxes would unfairly tax the poor and middle class and deter investment in business. The president said the revised capital gains tax legislation will be aimed at speculators, such as those who reap windfalls as a result of of public infrastructure upgrades, and will have little affect on average home and land owners. Details of the new legislation are not yet available.

Extra income from the new capital gains tax will go to municipalities, not to the federal government, Correa said.

Correa is not reintroducing inheritance tax legislation.

According to International Tax Watch and other tax monitoring organizations, Ecuador ranks in the lower 10% among nations in capital gains and inheritance taxes.