Government reduces taxes to attract big shows

The President of Ecuador, Rafael Correa, announced last Saturday during his citizen broadcast that the central Government will eliminate taxes on the box office for live shows, thus attracting artists similar to those offered by Peru and Colombia.

Correa said that between taxes and the central Government, artistic promoters lost around 52% of the gain in concerts, and that is why world recognized artist don’t perform in Ecuador as they do in neighboring countries.

Currently Ecuador is living a good economic time, despite the poor offer of international shows, since artists like The Cure and Pearl Jam didn’t include the country as part of their South american Tours in which Peru and Colombia were included.

“This tax was calculated on income, not on benefits; so, many tickets could be sold and obtain $ 500.000 but the cost of the show is $ 450.000 so the utility is only $ 50.000. you could sell many tickets, $500,000 ticket office but in the show spends 450.000 and only winning 50. 000 dollars. The tax was charged on the sale, all that is being corrected”, said the President.