Government will return taxes to exporters

This February 9 the Minister of Industries, Ramiro González, announced that by a presidential decree the ‘drawback’ mechanism will beformalized, the tax refunds to foreign trade, ie, tariffs and tax burdens for exporters.

According to President Rafael Correa in his last weekly address, the realized 5% payment of the export value will be taken as a calculation basis. This measure will apply to all non-traditional products.

For traditional ones, it will apply only in certain cases and the percentage will be lower. With regard to bananas, according to a table provided in the weekly address, 2% will be returned for sales to the European Union, 3% if it is Russia and 4% to China.

Whereas for tuna 3% will be returned and for flowers, being nontraditional, it will be 5%. Alejandro Martinez, President of Expoflores said this is positive because it will allow employers maintain liquidity.