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Trade unions ask the Government to eliminate shipping charges from the tax base for paying taxes
Posted On 16 Sep 2021
The increase in the costs of maritime freight, generated by the high demand and the shortage of containers, continues to worry the business sector that seeks solutions, which include the Government and the Andean Community of Nations (CAN) , to lighten this load in its operating costs, which has risen to 500% in the last 48 months.
Trade unions ask the Government to eliminate shipping charges from the tax base for paying taxes
The proposal is: to make the freight not part of the taxable base of the payment of taxes.
According to the National Federation of Chambers of Commerce of Ecuador and the Chamber of Commerce of Guayaquil (CCG) , the average cost of freight for a 40-foot container was $ 2,000 in 2019, while in 2020 the average cost rose to $ 5,000; and by 2021 it has climbed and exceeds $ 11,000 due to the shortage of containers and the aftermath of the pandemic.
“Given the conditions of the economy, the logistical problems to transport products will continue during the year 2022. This scenario endangers the situation of importers and exporters, as well as merchants and consumers in general,” said both unions through a release.
Regarding the request to eliminate the freight is not part of the taxable base of the payment of taxes, the unions explain that the traditional tax collection for freight has been marginal, therefore, a measure such as the one suggested does not have a greater fiscal impact. However, it has a favorable effect that relieves commerce and the consumer.
“To achieve this change, it is appropriate to take advantage of the fact that Ecuador has the pro tempore Presidency of the Andean Community and can promote the elimination of freight as a component of the calculation basis for the payment of import taxes,” suggest the unions.
Returning to the main problem, the increased cost of freight, the business sector regretted that the consumer is the most affected. He explains that the increase in freight costs causes strong effects on prices and the availability of goods for consumption.
“Just to cite one example, the toys that manage to arrive in the country and that are mainly marketed at Christmas will be approximately 30% more expensive. Considering that the consumer’s pocket was hit by the pandemic, dealing with these increases will be very difficult, ”the statement warned.
