Sales in Ecuador show the resilience of the Ecuadorian economy: almost 150,000 million dollars were invoiced until August 2023, which represents an increase of 3% compared to 2022 and 21% compared to 2021. This is how the Tax Administration (SRI) analyzes it when giving a report on tax collection.

Tax collection by the state increased by 2.5% at the end of the third quarter of the year, ie until September. SRI attributes to its innovative strategies and its tax control plan that it increased the collection to 13,502 million dollars in the nine months of 2023, despite the reduction of taxes – which means 200 million dollars this year – and the context of the slowdown of the world economy, as the example of China this year will grow between 4% and 5%.

The tax on the outflow of foreign currency is already 3.50%, with the change of Government, will it continue to fall to 2% as determined by Guillermo Lasso?

In this context, the general director of SRI, Francisco Briones, also pointed out “the growth of sales that shows the resilience of the Ecuadorian economy.” By August 2023, turnover reached $148.629 million. This is 3% more compared to sales achieved in the same period in 2022 and 21% compared to 2021, data from the entity shows.

The activities that had the highest nominal growth in sales are:

From value added tax (VAT), 6,342 million dollars were collected, which represents 5.5% more revenue.

Income tax: now the reduction will depend on how many family obligations the taxpayer has, not on salary

While 4,607 million dollars were collected from income tax, 10% more than in the previous period. “This growth is the result of higher collection of monthly income tax deductions and reports of natural and legal persons, thanks to the SEC’s control plans,” the institution points out.

On the other hand, foreign currency outflow tax (ISD) collection fell by 21% to $829 million, in this case mainly due to the rate cut to 3.5% that was implemented last July.

For Briones, “the sustainable increase in tax revenues this year is the result of the Innovation plus Collection program to fight evasion and achieve tax justice.”