Tax collection falls by 16% until May 2016

In the first five months of 2016 tax collection amounted to US $ 5 443.7 million; that is, 16% less than the same period of 2015, according to the Internal Revenue Service. Since last August tax revenues have been falling, a trend that continued in May when a 7% drop was recorded over the same month of 2015.

Lower sales, higher taxes and tariffs are some of the factors that slowed down the tax collection, according to tax experts and businessmen. The fall was also evident in the highest grossing taxes: the income tax (IR for its Spanish acronym), the value added tax (VAT) and the tax on foreign exchange outflows (ISD), which registered a fall between 16 and 23%.

Source: http://www.elcomercio.com/actualidad/recaudacion-impuestos-ecuador-iva-negocios.html