The automotive sector called for the tax system to be rationalized, where cars have a 40% tariff and 35% ICE, among other charges.
This January 13, 2022, Genaro Baldeón, executive president of the Association of Automotive Companies of Ecuador (Aeade), ratified the good performance of the automotive sector during the past year.
However, he assured that structural problems have to be solved so that growth continues, and it is possible to generate more direct jobs than 182,000 current; in addition to a greater contribution to the treasury than the $ 1,300 million reached in 2021.
For that, one of the biggest challenges is to rationalize the tax burden on the automotive business; and, with that, improve citizen access to vehicles
That tax burden it becomes excessive only by analyzing two of the main components. On the one hand, the Tax on Special Consumption, that reaches 35% of the sale price to the public; and on the other, at 12% Value Added Tax (VAT)
»Only in two taxes we are talking about 47% of what consumers pay for a vehicle is going. Added to that is the Tax on the Outflow of Foreign Currency, “he said.
Likewise, the 40% tariff that is calculated on the value of the car in the port also constitutes a weight. This tariff increases the price to the final consumer by an additional 15%.
«More than 60% of the value of the vehicle goes in four taxes. It is urgent that the State take measures to rationalize, so that people and producers who need to move and move their products are not punished under reasonable price conditions, “said Baldeón.
The automotive section It does not propose that taxes be eliminated, but that they be reduced to levels comparable with other countries in the region.
“If he Ecuador would rationalize your tax burden, the Condition could raise more. That does not imply loss of resources. The State wins, the consumer with the best price conditions wins; and the productive sector wins with the creation of new jobs, “he concluded.
In 2016, half of the vehicles sold in the national market were assembled in Ecuador. Today, 31% have chinese origin (not only from brands from that country), 16% is assembled in Ecuador, 11% comes from Colombia, 7.4% is imported from South Korea and 7% comes from the European Union.
The tax reduction would not only allow the arrival of more foreign brands, but would also pave the way for the signing of important commercial agreements with Mexico and the Pacific Alliance. (JS)
