New taxes take effect in 2020

Citizens who have a postpaid mobile phone plan will have to pay 10% more.

Once the Tax Simplicity and Progressivity Law was published in the Official Record on December 31, 2019, the new taxes became effective as of January 1, 2020. Among them, the Special Consumption Tax (ICE).

For instance, the Ecuadorians who have a postpaid mobile phone plan must pay 10% more now.

The digital platforms’ services such as Uber, Netflix, Airbnb, and Spotify, which are taxed at 12% of the Value Added Tax (VAT), will not be applied immediately.

In addition, since April, 0.04 cents must be paid for the use of plastic bags. The rule imposes on each unit with the consumption tax and establishes a progressive mechanism to pay 0.10 cents for each plastic sleeve in 2023.

The new taxes came into effect after the National Assembly approved the publication of the Law in the Official Record with 61 votes in favor. The Constitution establishes a 30-day term for a project to go to the Official Record through the Ministry of Law.

With this law, the Government plans to raise about $ 540 million in 2020 and, by 2021, obtain a similar figure.

Source: Pichincha Comunicaciones.

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