The tax impact on the economy of Ecuador (fiscal pressure), last year was at the top of the chart in South America.
The fiscal pressure allows to compare the tax burden of a country in previous periods and that achieved by other nations, primarily in the same region and the same period. The Fidesburo firm explains that the tax burden is the percentage of total tax revenues in the year, including contributions to social security and customs, compared to the Gross Domestic Product (GDP).
“That allows to set the collection percentage _ over the size of the economy as a whole. Applying this formula in Ecuador, that pressure in 2015 was 33.36%, higher than 31.31% recorded in 2014.”
If the calculation does not include the collection of the National Customs Service of Ecuador (Senae) and contributions to the Ecuadorian Institute of Social Security (IESS), fiscal pressure in Ecuador would be determined at 18.78% in 2014 and 19.51% in 2015. “But this result would not be comparable with that of other countries, which do consider these components.”
“A correct calculation places Ecuador on top of the chart of fiscal pressure in South America, close to those reported by the OECD (Organization for Economic Cooperation and Development) in 2013 in Brazil (35.7%) and Argentina (31,20%)