2024-04-07 05:11:33
The recent increase in the Value Added Tax (VAT) to 15% has generated concern among Ecuadorian consumers, especially those who depend on basic products for their daily subsistence. According to the Ecuadorian Institute of Statistics and Censuses (INEC), of the 75 products and services that make up the basic family basket, 28 are directly affected by this measure.
This information is derived from the Consumer Price Index, a detailed list prepared by INEC in accordance with the Internal Tax Regime Law, which specifies which products and services are subject to VAT payment. Among the taxed items are everyday products such as toilet paper, toothpaste, haircuts, among others.
**What are the affected products and services?**
– Café soluble
– Soft drinks
– Drinks served in restaurants
– Jelly
– Popular lunch
– Detergent
– Laundry soap
– Toilet paper
– Broom
– Woolen garments
– Cotton garments
– Men’s pants
– Shirts
– Underpants
– Men’s shoes
– Skirts
– Woman pants
– Flea
– Women’s underwear
– Medias
– Women shoes
– Haircut
– Deodorant
– Toilet soap
– Crema dental
– Shampoo
– Movie tickets
– Cigarettes
Those exempt from tax
Despite this tax increase, it is worth noting that the basic family basket remains mostly exempt from VAT, prioritizing essential foods such as rice, bread, noodles, canned tuna, cheese, chicken eggs, among others. In addition, fundamental services such as housing rental, the supply of drinking water and electricity, medical care, medicines and urban transportation remain outside the scope of this tax.
Against this backdrop, consumers and economic experts are evaluating the implications of this increase in the cost of living for Ecuadorian families, as well as the measures that could be taken to mitigate its impact on the most vulnerable sectors of society.