Towards the end of 2023, the poultry industry is celebrating the return of the zero rate of value added tax (VAT) on the import of breeding birds, a status that has been changed since September last year, when the 12 percent began to be collected. for this material that is imported for the production of chicken meat and table eggs in Ecuador.

For example, in 2022, according to figures from the National Corporation of Poultry Breeders of Ecuador (Conave), the sector imported 3 million breeding birds (heavy and light) for the production of chicken meat and table eggs from several countries, such as Colombia, Brazil and the United States. The sector, which plans to end 2023 with the production of 550,000 tons of chicken meat, a 10 percent increase compared to 2022 and the production of 3.65 billion eggs, was afraid of the speculation that could exist as a result of this charge, which projects the effect of 3 million dollars per year that would directly affect the consumer.

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

Also, the measure was in effect for more than three months. According to Conave, information is currently being collected from companies in the sector to calculate the partial impact of the measure.

Last November, the union blamed the National Customs Service (Senae) for misinterpreting the law and not taking into account the statements of the Ministry of Agriculture and Livestock (MAG) and the Tax Administration (SRI) on maintaining zero VAT rates on the import of poultry genetic material.

Now the same Senae informed Conave about the return to the zero rate of VAT, since by official letter no. SRI-SRI-2023-0301-OF dated December 7, 2023 provides a statement on the applicability of the zero VAT rate. % of VAT for the import and transfer of breeding birds of the species Gallus domesticuswhen the said animals, apart from being reproducers, have as their ultimate purpose human consumption at the end of their production cycle, when they are slaughtered and sold as meat, and the provisions established in SRI-SRI-2023-0216-OF document are null and void. , dated September 12, 2023, in which the applicability of the VAT rate of 12% is indicated, according to the Customs announcement.

The poultry sector fears that there are speculations on the prices of chickens and eggs and requests the abolition of VAT on the import of laying birds.

The zero rate is in force for four subheadings: