The VAT recorded less revenues in 2015

The drop in sales of companies to also is also suffered by the State: it collected 47 million less from the VAT (Value Added Tax) in 2015, compared to the previous fiscal year, a setback not seen, at least in the last six years.

Galo Cabanilla, president of the UTEG (Technological Business University of Guayaquil), tells to Daily Expreso that the reduction in the economic activity, practically evidenced in three straight quarters of relapses in the GDP growth (GDP) between January and last September, weighed on the taxes collected, precisely because they are directly related to those transactions.

He ensures that the lowest level of taxes raised will remain because employers keep their negative expectations as well as consumers, as reflected in the indicators of the Central Bank of Ecuador. The fact is that those are the most important sectors that have the greatest weight on the Gross Domestic Product (GDP). (I)

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8835739&idcat=38269&tipo=2