Tourism sector presents proposals to President Guillermo Lasso and Minister Niels Olsen

The tourism sector sent two sheets of proposals addressed to the President of the Republic, Guillermo Lasso, and the Minister of Tourism, Niels Olsen, in two separate documents, which contain inputs from actors in this sector to be taken into account in the tax, labor and investment reforms that the Regime prepares to send to the National Assembly.

According to the sector, tourism was for 30 years the third non-oil source of foreign exchange income, and that in 2019 generated the 2.2% of PIB national by the income of $ 2,287.5 million.

However, in the first instance, the letter sent to President Lasso by the National Federation of Provincial Chambers of Tourism of Ecuador (Fenacaptur), exposes the “precarious situation of the sector” after the impact of the COVID-19 pandemic that worsened the economic crisis generated by the events of October 2019.

According to Fenacaptur, tourism was the sector most affected by the economic crisis, for which it went to position 12 in the last quarter of 2020 (compared to the same period in 2019) and to sixth place in 2020 (compared to third in 2019), for losses of more than $ 1,500 million and more than 60 thousand jobs.

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Given this background, Holbach Muñeton, president of Fenacaptur, He presented the proposals developed by the Bolívar Chamber of Tourism, through President Galo Vásconez, which have been accepted by other provincial chambers.

It is about 14 points among which it is worth noting that the main offers in favor of productive activities, issued during the electoral campaign, are fulfilled, including the granting of soft credit lines, with interest rates not higher than 3% per year, he added. term with grace periods not less than five years and that include both capital and additional costs since these financings will serve, primarily, to bring companies up to date with all the obligations that became expired and in arrears, pending that the recovery and reactivation stages begin.

Also that the tax base for taxation of the entire economically active population be expanded, “so that taxes are paid by all.” They also request a treatment similar to the one that the Government gives to national and foreign airlines with the elimination of the Tax on the Exit of Foreign Currency (ISD), in the case of payments abroad to suppliers that require their companies specialized in tourism, to improve your competitiveness.

In addition, that actions and strategies be outlined to combat the informality that is detected in all sectors of activity; that the Government programs that will have an impact on employment, economic reactivation and tax benefits for the State, such as the Educational Tourism Program, the My Province Program and the Ecuador Digital Program, be decreed as State Policies.

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And finally, call a Popular Consultation to immediately reestablish the Political Constitution of 1998 with the necessary reforms and consequent total elimination of the so-called Constitution of Montecristi of 2008.

Meanwhile, the petition addressed to Minister Olsen, contains 12 proposals from the sector to be considered and / or ratified in the new proposals for Government Bills:

1. That personal expenses for tourism of natural persons; and, that of legal persons, in companies registered with the Ministry of Tourism, are considered deductible from the tax base for the calculation of the permanent income tax settlement, which is partially stated in the above-referred Law.

2. That the totality of the losses derived from the manifestations of October 2019 and the pandemic of 2020, 2021 and 2022 are deductible in the following fiscal years without limit of amounts, percentages and term (partially contained in the Law referred to above).

3. That accommodation services to foreign tourists be taxed with 0% VAT, in replacement of the current VAT refund procedure. This rule is only useful if a tax credit is available for the values ​​that cannot be offset with the realized VAT values ​​(it is partially included in the Law previously sent).

4. That the amounts owed by tourism entrepreneurs to the SRI and the IESS can be paid in up to 48 months without interest, fines or surcharges, also without the payment of the initial amount as an advance (stated in the Law previously sent).

5. That the possibility of creating free zones that favor Tourism be established, with facilities and less paperwork for a real implementation (it is stated in the Law previously sent).

6. That the expenses for the payroll of tourist businesses registered in the Ministry of Tourism, are deductible in a percentage of 200% for the calculation of the taxable base for the payment of income tax (not included in the Law previously sent) .

7. That new investments without a minimum amount and under the requirements of the corresponding regulations, have access to the benefits of the COPCI to favor investment (not stated in the above-referred Law);

8. That the payments made abroad made by tourist companies legally registered with the Ministry of Tourism for expenses inherent to the corresponding operation and promotion are exempted from the payment of taxes (not stated in the Law previously sent).

9. That by 2021, 2022 and 2023 the GADs must reduce by 50% the value to pay for property tax, municipal license, operating license and 1.5 per thousand to tourist businesses registered with the Ministry of Tourism (there is no evidence in the Law previously referred).

10. That the tourism companies legally registered in the Registry of the Ministry of Tourism be exempted from the payment of the potential property tax that has been announced (not included in the Law previously sent).

11. That the yields of the credit operations that are granted to companies registered in the Ministry of Tourism are deductible in their entirety for the Financial Institution and in case of breach of the obligations it does not affect their results that must be registered in a special account; and, that the credits are granted under special conditions of amounts, terms, thanks and interest (not stated in the Law previously sent).

12. That the new labor stipulations that are proposed are favorable and recognize that the system of working days recognizes that in Tourism we work in all regions of the Country, 24 hours a day, 7 days a week and 365 days a year (consists of partially in the Law previously referred).