The Association of Automotive Companies of Ecuador (Aeade) reported that vehicle sales plummeted in the country between March and April due to the quarantine that forced activities to close, to prevent the spread of the Covid-19 pandemic.
The sector notes that the containment measures had negative effects on car sales. Thus, between March and April this year vehicle sales had a reduction of 80%, in relation to the same months of 2019.
The fall in demand, according to Aeade, will also be reflected in the payment of taxes in the sector. In 2019, the $ 1,557 million that was canceled to the State was made through tariffs, VAT, ICE, ISD, Vehicle Property Tax, Income Tax, Fodinfa and Green Tax. The tax burden increases the cost of a vehicle by 110%, said the union.
The sector also faces inconveniences and delays due to the excessive paperwork that is required in the country. The Aeade has identified at least 20 processes that could be eliminated or simplified immediately, applying the Organic Law for the Optimization and Efficiency of Administrative Procedures.
The automotive chain proposes the reopening of industrial and commercial activities , through pilot programs in those cantons that are still at a red light.
The Aeade indicates that the proposal is in the hands of the cantonal COEs to authorize its application. Through our proposal, each company commits to implement biosafety protocols, prioritize teleworking with a maximum of 50% face-to-face work, and guarantee the mobilization of its workers. sector taxes.
At the moment, the Guayaquil Emergency Operations Committee has already authorized the pilot plan and, starting today, the partial reopening of activities in the main port began.