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Foreign currency outflow tax is already at 4% and the Government will continue to lower it by 0.25% every three months until it is eliminated

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In this 2022, the 1% reduction in the foreign exchange exit tax (ISD) has already been fulfilled and the Minister of Economy and Finance, Pablo Arosemena, indicates that it will continue to fall every three months until this tax is finally eliminated.

The airline sector no longer has that tax burden that was 5%. The Government eliminated the ISD for that sector in September 2021 and in December it decreed the progressive reduction for the rest of the activities. Thus, a first reduction of 0.25% was applied on January 1, the second on April 1, the third on July 1 and the fourth of the year on October 1, with which the ISD is now at 4%, in accordance with Executive Decree 298 of December 22, 2022.

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For the importation of hydrocarbon derivatives, biofuels and natural gas, a complete elimination was also given. Last January, through Executive Decree 327, this tax on the outflow of foreign currency for this specific sector went from 4.75% (which was the rate in force at the time) to 0%.

“We continue to lower the tax on foreign currency outflows. Now at 4% (for more than a decade it was 5%). And we will continue to drop 0.25% quarterly until we eliminate it,” Minister Arosemena posted on his Twitter account.

He also mentions that in this way the campaign promises of President Guillermo Lasso are fulfilled and that “eliminating ISD strengthens the citizen’s pocket and promotes reactivation.” (YO)

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Source: Eluniverso

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