After almost five years since its abolition, in 2018, the tax of two per thousand was declared unconstitutional by the Constitutional Court with Decision No. 35-16-IN/23 of February 1.

This was reported by the Chamber of Commerce of Guayaquil (CCG), which recalled that six years ago it filed a lawsuit for unconstitutionality against this tax, which it called a “zombie tax.”

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According to the union, this tax dates back to 1971, when an annual tax of two thousand was introduced on commercial, banking and industrial activities in the canton of Guayaquil. The goal was to raise funds for the construction, equipment and maintenance of the University Hospital of the University of Guayaquil.

However, over time there was a reform of the legal body that regulated this tax, which left a legal vacuum regarding its application. Therefore, the tax remained in effect and the University of Guayaquil continued to be its beneficiary, as established in the original codification.

In view of this change, the Chamber of Industry of Guayaquil, the Chamber of Commerce and the Chamber of Construction argued that the tax should no longer be collected because it had been abolished.

Currently, the Chamber of Commerce of Guayaquil pointed out that although the tax has already been abolished, the Court’s decision confirmed the Chamber’s position that the application of “retroactive, unjustified and unfair” taxes is not constitutional.

“This penalty sets an important precedent that prohibits the ‘revival’ of repealed taxes and underscores the need for predictable and non-abuseable tax regulations,” the Chamber said in a statement released this Tuesday afternoon, February 14.