The collection of value added tax (VAT) of 12% on the import of laying birds continues to be the subject of analysis in the poultry sector, which directly affects the prices that end consumers pay for chicken meat and table eggs. . And this in the context in which the sector plans to conclude the year 2023 with the production of 550 thousand tons of chicken meat, which is a growth of 10% compared to the year 2022. As for eggs, they will end this year with a production of 3.650 million units.

The collection of this gift began last September, recalled Diana Espín, executive director of the National Corporation of Poultry Breeders of Ecuador (Conave). Previously, laying eggs were taxed at a zero rate, according to what is established in Article 55 of the Law on the Internal Tax Regime.

The poultry sector estimates an impact of 3 million dollars per year due to the collection of 12% VAT on the import of breeding birds

“The scheme changed due to a misinterpretation of the law by Senaa (Ecuador’s National Customs Service) and the Internal Revenue Service (SRI),” he explained.

A spokesperson for the poultry sector reiterated that the annual output for the sector is estimated at $3 million. For example, in 2022 the sector imported 3 million breeding birds (heavy and light) for the production of chicken meat and table eggs from countries such as Colombia, Brazil and the United States.

However, what worries the sector most now is the speculation that could exist as a result of this fee. “We are concerned that because of this measure, traders will start processes of speculation that will further affect Ecuadorians. As a poultry sector we will categorically reject speculation,” said Espín.

He compared the situation here with that of other countries in the region, pointing out that each country has its own internal legislation, but in general products for the agricultural sector and intended for food production are not subject to this tax.

“Ecuadorian legislation clearly establishes a rate of 0% for poultry farming,” said director Conave. He revealed that although there have been no contacts with the new government yet, they expect contact in the next few hours. In the meantime, he stated that there is a favorable statement from SRI to continue the rate of 0%.

Chicken meat is the most consumed protein in Ecuador and it wants to continue to grow: each person consumes 28 kg per year

“SRI already spoke to Senae on November 10 to continue with the 0% application, but Senae ignored it,” he complained.

In connection with this accusation, this newspaper also consulted Marisol Molina, the executive director of the Egg Producers’ Union (Uniproh), but the leader points out that they announced themselves after the SRI announced the agreement.