The Government raises a single agricultural tax

The single income tax for the agricultural sector is maintained in the draft Organic Law on Tax Simplicity and Progressivity, sent by the Executive to the National Assembly.

The Government raises a single agricultural tax

This tax will be applied to 9,808 companies and it is expected to raise $ 177 million annually.

The tax will be charged for income from agricultural activities in the local or external production and / or commercialization stage. For this purpose there is a progressive table that states that producers who have income up to $ 19,999 do not pay taxes.

But those who generate from $ 20,000 to $ 300,000 will pay 1% tax. As your income increases the percentage can reach up to 1.80%. Exporters whose income is from $ 0 to $ 300,000 will have a tax of 1.30% and can reach up to 2%.

It is calculated on a basic fraction and on the surplus. John Arias, manager of Census Consultores, legal and tax consulting firm, explains that in the case of the banana sector, the tax has formalized the informal ones.

“The Law aims to make the entire agricultural sector formalized, without having to worry about invoices, but only paying the tax that corresponds to its net sales,” he explained.

The percentage is established based on sales quantities, for example: if the producer sells $ 1 million, he has to pay 1.6%, which would be $ 16,000 of income tax. Kléber Sigüenza, trade union representative, agrees with Arias.

“The producer benefits because it avoids excessive paperwork, risks with the Internal Revenue Service (SRI), and is formalized; It is a win and win, ”he says.

He believes that the measure is positive because taxes must be progressive: “the one who sells the most earns the most and pays the most”. Ensures that the entire agricultural sector supports the measure.

https://www.eltelegrafo.com.ec/noticias/economia/4/impuesto-unico-fisco