2024-09-03 00:58:34
The reduction in the Foreign Exchange Tax on fuels was achieved through an Executive Decree.
The President of Ecuador, Daniel Noboareduced the rate of the Tax on the Exit of Foreign Currency (ISD) for the importation of hydrocarbon-derived fuels.
Through the Executive Decree 325the president took this measure this Thursday, July 11, 2024.
The official document states that this reduction to 0% applies to the Importation of hydrocarbon-derived fuelsincluding: biofuels, liquefied petroleum gas and natural gas.
Fuels must be intended for use in theinternal consumption of the country and can be imported by individuals or national and foreign companies.
This is an exception to the Tax on the Exit of Foreign Currency, which remains in the 5% from April 2024.
The decision was the result of a request made by the Ministry of Energy and Mines based on a report from the Undersecretariat of Refining, Industrialization, Transportation and Marketing of Hydrocarbons.
The reduction of the ISD rate includes all the payment methods:
- Cash
- Transfers
- Cheques
The decree calls on the Ministry of Energy, the Energy Regulation and Control Agency and the Internal Revenue Service to issue the necessary resolutions and administrative acts in a maximum period of 15 days.
The document justifies the decision in the objective of “providing legal security to companies that import and supply fuel to the national market, guaranteeing the level playing field“.