Three sectors will apply tariff 0 to imports

Ecuadornews:

The draft Economic Law includes these sectors in the Organic Law of Internal Tax Regime. The Economic Development Commission convened for Thursday, May 31, the Minister of Finance and other dignities to begin the analysis of the text.

The draft Organic Law for Productive Development and Attraction of Investments includes the application of the zero tariff for the importation of inputs for the agricultural, aquaculture and fishing sectors, in addition to those already existing.

For this purpose, it is proposed to modify numeral 4 of Article 55 of the Organic Law of the Internal Tax Regime. The mentioned article already incorporates elements such as certified seeds, plants, balanced feed, fertilizers, and insecticides, among others, that are approved by Decree of the President of the Republic.

From the Ministry of Agriculture has already sent a decree that at the moment President Lenin Moreno evaluates, reported this Wednesday, May 30 the Minister of the field, Rubén Flores. He explained that the document refers to all phytosanitary inputs from the perspective of active ingredients for all conventional pests of agriculture.

There are also certified seeds and a series of elements that are key to productive support. In the livestock sector is the issue of milking, mechanization, genetic improvement, imported semen, straws, said Flores.

In general terms, he also referred to the bill. He said that all the issues have not been incorporated, but can still be discussed in the National Assembly, the funds for union attorneys, which guarantee that the unions consolidate their associativity and can facilitate the power of purchase and sale.

He added that there are two ways to act responsibly in agricultural policy. “One is to reduce production costs and the other is to increase productivity.” The president of the Chamber of Agriculture of the II Zone, Kléber Sigüenza, said that direct agricultural inputs are already exempt from VAT; however, it is important that it occurs in indirect inputs such as agricultural machinery, plastics. “We have an excessively expensive economy. The reduction of production costs can have an impact on more people investing and generating jobs. ” Sigüenza explained that if all agricultural inputs would be exempt from VAT, one third of the total cost of production would benefit.

Washington Núñez, president of the National Rice Corporation, agrees with Sigüenza and added that the rice sector requires certified high-yield seeds to have more productivity and compete with other countries, such as Colombia and Peru.

Authorities explain on Thursday May 31 the content of the project

The Economic Development Commission is in charge of dealing with the project presented by the Executive so that it is processed urgently. The heads of the Internal Revenue Service, Ministry of Finance and the National Customs Service will attend to explain the measures. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/tarifa-cero-importaciones-ley-economica