Ecuador Congress Plans to Hold Final Vote on Tax Bill on Monday

(Bloomberg) -- Ecuador’s Congress plans to hold a final vote Monday on a tax increase in a bid to ensure a $4.2 billion loan program from the International Monetary Fund.

Congress President Cesar Litardo requested that legislators meet for the second and final debate on the bill at 3:30 p.m., according to a summons. The tax bill has 50 articles and seeks to raise returns by almost $600 million.

Ecuador Congress Plans to Hold Final Vote on Tax Bill on Monday

The failure to pass an earlier package in November sent bonds to record lows and threatened the survival of the IMF agreement.

The bill includes a temporary higher income tax for companies with annual sales greater than $1 million, special consumption taxes on foreign digital services such as Netflix and Spotify and a tax on mobile phone plans. Individuals earning more than $100,000 a year will no longer get tax breaks on expenses such as restaurant meals and gym memberships.

The bill is President Lenin Moreno’s third attempt since early October to narrow a budget deficit and stick to the terms of the IMF plan. Failure to narrow the deficit would put at risk a $500 million disbursement due before the end of the year, and another $1.4 billion in 2020.

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