Through a national channel, on Tuesday night, President Guillermo Lasso announced the Government’s decision to reduce the rates of various taxes, with the purpose of boosting the country’s economy.
The foreign currency outflow tax (ISD) will drop from 4% to 2% in the course of this year. This measure will not only make imports of machinery and various household consumer products cheaper, but it will also serve to attract new investment, the president explained.
On the other hand, he pointed out that with the aim of promoting tourism, the value added tax (VAT) will decrease from 12% to 8% during the holidays of Carnival, Easter, All Souls’ Day and Independence of Cuenca.
The rate of the special consumption tax (ICE) will also be reduced on mass consumption products, non-alcoholic and soft drinks, industrial and craft beer, plastic bags and pure alcohol.
Finally, the ICE of arms and ammunition will be cut from 300% to 30%, said the president, indicating that this is intended to support public and private security services.
The products that ICE will lower after the Government’s announcement
“This way we will facilitate the legal provision of equipment so necessary for the fight against crime,” said Lasso.
With the reduction in tariffs, the treasury will stop receiving around $140 million. The president said that the state is putting this money in the pockets of citizens. (YO)
Source: Eluniverso
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