Agricultural and aquaculture export chains reject the creation of more taxes and ask to exclude rural lands from the wealth tax

The Corporación de Gremios Exportadores del Ecuador (Cordex) issued a statement this Monday informing its position of rejection of a possible new land tax as part of the tax reform that is being processed in the National Assembly, since 100% of the production agricultural and aquaculture is based in rural areas.

“Imposing a new tax on land, which is the main means of production, would seriously affect its ability to sustain employment, depleting the little liquidity of the productive sector,” says the union.

Both chains ask to exclude rural lands from the calculations for the new wealth tax that is being discussed in the Legislature.

José Antonio Camposano, president of Cordex, maintains that “creating more taxes on the productive sector directly affects its ability to sustain current employment and to create more jobs in the future.”

“This is even worse when this tax is on the assets of companies or people from the agricultural or aquaculture sectors that work in rural areas. For this reason, all rural properties should be excluded from the calculation of any tax. Better yet to eliminate taxes on wealth, since this is not synonymous with utility, even less liquidity, “he said.

Agricultural and aquaculture chains agree that the solution is not to increase taxes in an economy that is already distorted by tariffs such as the foreign exchange tax (ISD), value added tax (VAT) that still pay for inputs and goods of capital, as well as the special consumption tax (ICE). On the contrary, it is to hit again the productive shrimp sector that generates employment and attracts foreign exchange for the country.

“The impacts of the agro-export chain directly affect our competitiveness, putting our sales in different markets at risk,” added Camposano.

Cordex adds that “to this situation it must be added that the chains are facing serious problems due to the container logistics crisis as they do not have spaces in the warehouses to send their product to different markets.”

This situation is complicating the logistics chain and therefore cutting off the payment chain. Faced with this scenario, they oppose the creation of more taxes and levying taxes on rural lands. (I)