Ecuador Leader Seeks Tax Rise to Finance War on Drug Cartels

Ecuador’s President Daniel Noboa is seeking to raise taxes to shore up the government’s teetering finances after declaring war on the drug gangs terrorizing the country. Bonds rallied.

In a bill submitted to the National Assembly overnight, he said he wanted to lift the value-added tax, or VAT, to 15% from 12% to help fund security measures to curb soaring violence.

“This catastrophic crisis provokes the need to buy weapons and supplies for military and police equipment to confront the domestic armed conflict,” the government said in the bill.

Daniel Noboa

Photographer: Franklin Jacome/Getty Images

Ecuador’s dollar bonds outperformed most emerging-market peers Friday morning, ...