Ecuador president ends subsidies that hold down fuel costs

QUITO, Ecuador — Ecuadorian President Lenín Moreno announced an end to government subsidies for holding down fuel prices and said Tuesday night that he will send congress a proposal to overhaul taxes and labour rules as a way to revitalize the economy.

In an address broadcast on television and radio, Moreno said he was eliminating the $1.3 billion subsidy for gasoline and diesel. The move will raise the price of gasoline to $2.30 a gallon from $1.85 and the cost of diesel to $2.27 from $1.03.

He says a tax overhaul bill that he will send to the National Assembly within hours will include a provision for a three-year special tax on companies with annual revenue above $10 million. He says the extra revenue would go to education, health and safety.

The Associated Press