The first quarter of 2023 showed an increase in what has to do with collections, according to Francisco Briones, Director General of the Tax Administration (SRI) in a statement.

Briones revealed that through March 2023, the entity had raised $4,511 million, which represents an additional $46 million compared to the same period in 2022.

The official analyzed that the positive behavior of the economy contributes to the growth of tax collection, stating that by February 2023, sales in the country reached 32,460 million dollars, which represents 5.6% more than the sales recorded in the same period in 2022 and 25.7% more in comparison with those from 2021.

Projections show that it will reach $51,000 million by March.

In addition, Briones pointed out that this year, 99% of the quarterly collection target has been met, despite tax cuts such as the special consumption tax (ICE) and the foreign currency outflow tax (ISD), which according to the government represents 140 million dollars of the treasury will stop receive.

These reductions were announced by the President of the Republic, Guillermo Lasso, on January 10 in order to strengthen the country’s economy.

For example, ISD is forecast to fall from 4% to 2% during this year.

President Guillermo Lasso announced the reduction of various tax rates

This measure will not only make the import of machinery and various household consumer products cheaper, but will also serve to attract new investments, the president explained.

As for ICE, reductions have been announced in consumer products, non-alcoholic and soft drinks, industrial and craft beer, plastic lids and pure alcohol.

Also ICE weapons and ammunition from 300% to 30%, the president said and indicated that this is intended to support public and private security services.

Regarding value added tax (VAT) collection, from January to March last year, USD 2,112 million was collected, 7.7% more than in the same period in 2022. In March 2023 alone, USD 621 million was collected for VAT, 5, 4% more compared to March 2022.

Activities such as trade, manufacturing, mines and quarries, agriculture and transport stand out as those with the highest nominal sales growth.