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The rate for Customs stops large projects
Posted On 15 Nov 2017
Ecuadornews:
The effects of the rate charged by Customs, which is paid according to the weight of the items, are already seen on a large scale in investments, which are necessary to encourage the growth of a country whose economy is contracted. But it is not an issue that should be seen in isolation.
Not only the expenditure that, for example, the most important industry in the country, the oil company, must make in pipelines, drills or trucks, but there´s also the fact that this Monday, the Government fell into “default” or rather “in a non-payment action” with Schlumberger, the most important company in the world, of $ 350 million and another 850 million are due.
The affected sectors
Mining
The Fruta del Norte project, the most ambitious, will demand imported heavy equipment (drills, heavy machinery), local purchases only account for 13% of the total. The capital and operating cost is $ 854 million. For Rodrigo Izurieta, Former President of the Chamber of Mining, this is disproportionate.
Transport
The rate makes all transport units that are imported more expensive and also generates speculation in other products: spare parts and supplies, says Abel Gómez, president of the National Federation of Public Transport Cooperatives of Passengers of Ecuador (Fenacotip).
The ports
Modernizing ports to improve logistics will be as expensive as it is impossible. Two of the most important private terminals in Guayaquil plan to invest around 42 million dollars in equipment next year. That expense, which generates employment in the city is in doubt.
The oil
The oil industry is on the verge of total fatigue: they will be charged 3% more of Income Tax, they do not get payed the accumulated debt and now the tariff rate. The spokesman of a large company told EXPRESO Diary that in trucks, drills, pipes and input they will spend millions. They prefer not to invest. (I)
Source: http://www.expreso.ec/
