Beer consumption generates high income to the treasury by ICE: $ 124 million were collected in five months of this year in Ecuador

There are more than $ 357 million that have been collected by special consumption tax (ICE) between January and May 2022, according to figures from the Internal Revenue Service (SRI).

This is $30 million additional to those received in the same period during 2021.

Within the $357 million there are two taxes that generate more income for the State. These are the ICE to imports with $ 136 millionwhich had a variation of 80.25% compared to 2021.

‘I pay credit cards, my children’s education, gasoline and now $150 a month for income tax. This is very strong,’ says the worker who has spent several months withholding tribute in Ecuador

And the ICE on beer is another of the biggest collectors. It is located within the segment of internal operations with $124 million. Here the variation was 29.63%.

Larry Yumibanda, economist and president of the Circle of Economy of Guayaquilconsiders that the increase in the tax only on imports is due to the takeoff of electronic commerce, which according to the Ecuadorian Chamber of Innovation and Technology (Citec), grew 400%.

As for the beer, it was in January of this year when a higher tax income was presented with $ 37 million and in February there was the lowest perception with $16 million.

For him economist Guillermo Granjathis demonstrates that the habit of consuming it is maintainedlike other alcoholic and carbonated beverages.

“Normally ICE has two purposes, the collection and the modification of consumption, so it is supposed that if I put more tax on alcohol and beer, people should stop consuming it; however, in reality it is different because people do not care how much that is, but continue consuming. About soft drinks, people are used to having lunch and snacks with soft drinks”, says Farm.

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The ICE to soft drinksuntil May of this year, has a collection of $34 million. Almost $1.4 million less than what was received in 2021.

According to Yumibanda, this decline may come from eating habits.

“(The tax on) soft drinks has generated a change in behavior, I imagine for health issues because the others have been increasing, although there has been no drastic change”, says Yumibanda.

Meanwhile, the ICE alcohol and alcoholic products has a collection of more than $15 million and prepaid television services, more than $14 million through May.

“I almost had a spill when I saw the credit card bill,” says a user who forgot the end of the grace months

Yumibanda considers that the collection in prepaid television is not high because citizens are leaning more towards the service of streaming.

The vehicles are other categories where taxes are collected and exceed $14 million. This segment registers an increase of more than $3 million in contrast to 2021.

Here only hybrid and electric vehicles have been exempt from ICE, since last November, in accordance with the Internal Tax Regime Law.

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As for the perfumes and toilet waters raise $6 million; energy drinks, $1.8 million; plastic bags, $373,000 and club membership dues, $94,000.

Experts consider that the collection of club memberships has fallen, which between January and May 2021 was $115 million, for being something luxury or for savings.

“ICE should not exist because that is what VAT is for. I did not know that a kitchen or vehicle is special, it is more collection-based, so since VAT cannot be increased, ICE was created as a collection tax,” Yumibanda points out.

The SRI has an unspecified tax segment. There, $100,000 has been raised. There are other categories with no collection, such as ICE for incandescent bulbs, stoves, water heaters, cigarettes, mineral water, airplanes, tricars, and others. (YO)