Tax collection grew in January 2022 by 19%

The tax collectionone of the main sources of State income, recorded growth in the first month of this year.

In January 2022, the Internal rents service (SRI) received $1,556 million in taxes. The figure, when compared to the same month in 2021, is 19% higher. The first month of the previous year, $1,303 was raised.

Marisol Andrade, general director of the Internal Revenue Service (SRI), reported that in January 2022 $253 million more were collected than in the same month of 2021. “The increase in tax collection is the result of control processes and collection executed by the SRI to verify the timely and correct compliance with the payment of taxes. In addition, it is the reflection of the economic reactivation of the country,” said Andrade.

The collection improved in January due to the increase, mainly, of the collection of two taxes. The Value Added Tax (VAT) it generated $827 million. 31% more than the same month of the previous year when it concentrated $632 million.

VAT growth leveraged a 13% increase in collection in 2021

Also, by way of Income Tax (IR)in January 2022, $467 million were collected, 6% more than in the same month of 2021 when the tax entity recorded $442 million.

Tax expert Javier Bustos explained that although there is growth in this tax, the increase cannot yet be attributed to the entry into force of Organic Law for Economic Development and Fiscal Sustainability after the COVID-19 pandemic, which modified the progressive table for calculating this tax, reaching 37% when the tax base exceeds $100,000. At the end of February, says Bustos, the impact of the rule on collection can already be felt. This is due to the fact that, since January, Ecuadorians who earn more than $2,000 per month and who are under a dependency relationship, began to see a greater discount in their salary for the IR concept.

Other taxes such as Special Consumption Tax (ICE) increased its collection by 17%. Until the first month of the year, this tribute reached $90.6 million; some $13 million more than the same period in 2021. The Foreign Currency Outflow Tax (ISD) also grew by 15%, collecting $2.6 million.

The tax authority highlighted that, during the course of the year 2022, the SRI will intensify the control and collection processes in strict application of the current tax regulations. (I)