Taxes will raise on cars, cigarettes, and alcoholic beverages

After hearing the final results of the last referendum in Ecuador, the director of the Internal Revenue Service (IRS), Carlos Marx Carrasco, started to propose a tax reform.

It was initially proposed to levy more taxes on alcohol, cigarettes, drugs and mobile calls but it was reduced to only the first two. $ 0.2 more per cigarette and $ 6 per liter of pure alcohol in drinks. The ICE increase on the beer (unit value is between $ 0.60 to 0.70) will be $ 0.30, in the case of the alcohol this increase will take place over three years.

Calls to mobile phones and drugs were discarded. Instead, Carrasco proposed to care of the environment with the creation of a tax for the protection of the nature based on a tribute to vehicles that will be charged in an annual enrollment. Through a study by the tax authority, 97% of the country’s vehicle fleet will have to pay a fee of $ 30 per year.

The remaining 3% of the vehicles that belong to a higher price range will cancel a value that will border USD 5 000, according to a table by cylinder capacity and value.  There will be an exception in the collection of this tax for hybrid and electric vehicles.

Source: El Comercio Newspaper