Tax will make vehicle registration more expensive by 50% in Pichincha

The proceeds, as a kind of special contribution, will go from this 2022 to improve the rural roads of the province.

The vehicle registration will be more expensive from 2022 throughout the province of Pichincha. The Prefecture, led by Paola Pabón, has established a new tax under the figure of «Special contribution for road improvement and maintenance».

This new taxin the case of vehicles individuals (new and used) will be the equivalent of 50% of the value determined by concept of registration in the tariff of the National Transit Agency (ANT). In other words, if until last year you paid $100 to register your car, now you must add $50 more.

For the vehicles of public transport, an additional 50% will also be charged. However, for motorcycles (new and used), the percentage drops to 30%.

According to documents of the Prefecture, all the proceeds will be invested in the rural road from the province.

The only exceptions for this new tax They are: members of the diplomatic and consular corps, the Ecuadorian Red Cross, Fire Departments and members of international organizations.

The law allows special contributions

These types of contributions are established in the Organic Code of Territorial Organization and Decentralization (Cootad), which was approved in mid-2010. That is, any local government can create them when it deems it convenient.

In the case of the Prefecture of Pichinchathe central problem is that most of rural roads they are of low traffic, reason why tolls cannot be established. In this context, the creation of a new tax it is the only way to obtain more resources for road construction and maintenance.

In addition, the establishment of these alternative sources of financing are prerequisites for the local government to access loans from the Development Bank of Ecuador (BDE).

According to information published through the official Twitter of the Prefecture of Pichincha, the special contribution, and the fund for road maintenance that will be created with its collection, were approved by the majority of the Pichincha Provincial Council on October 7, 2021.

In addition, it is confirmed that it will serve to contribute to the improvement of the roads of the cantons and rural parishes.

The state of the roads in the province has been a constant complaint from citizens in recent months. One of the most critical points is called Alóag-Santo Domingo, although this road has a toll. (JS)

At what point did it become normal for us to be charged fees and values for each public service?

Health = Pay IESS
Highways and roads = Toll, registration/tapping and special rate.
Garbage collection = take your fee!
Works = Fee for improvements

What the hell are our VAT and IR used for? https://t.co/pZvyWZKGih

– Mario Cuvi (@mariocuvi) January 24, 2022