The Ecuadorian Football Federation (FEF) and the Liga Pro of Ecuador rejected this Thursday that a value added tax (VAT) of 12% would begin to be applied to the price of football tickets, as proposed by a decree of law issued by the Government.

Until now, tickets to sporting events have been exempt from VAT in Ecuador, something the government wants to change with a tax reform signed by President Guillermo Lasso last week and submitted to the Constitutional Court for review and possible approval.

The reform requires that public performances, such as concerts by international artists or football matches, start paying VAT to the cashier’s accounts.

“This government decision affects the development of national sports, events in general and thousands of families who depend on these economic activities, because the promotion of sports and the attendance of the public at sports and artistic venues will be further reduced,” FEF and Liga Pro said in a joint statement.

Both institutions considered that “alternative measures should be established that do not affect the entertainment of Ecuadorians nor harm the sustainability of the clubs and the development of football as a tool for social inclusion”.

Both the FEF and Liga Pro asked the government to review the imposition of this new tax and were open to “seeking a solution that will allow the integrity and growth of the sport to be preserved”.

The Minister of Economy and Finance, Pablo Arosemena, asserted that neither large concerts by international artists nor football matches can be considered a basic necessity like medicines that are exempt from VAT.

The tax reform signed by Lasso also provides for a 15 percent tax on sports betting profits.

Since the President dissolved the National Assembly (Parliament) to call an extraordinary general election, it is the Constitutional Court that must review the decree before it takes effect. (D)