The National Assembly did not add the necessary votes to ratify the approved text that denied that Government proposal and since then it was known that such an increase would occur and the procedure was followed for the new tax rate to be applied from April.
Small and medium-sized business merchants in different Ecuadorian cities have for sale products that already have new prices marked that came from the factories after the increase in the value added tax (VAT) that will come into effect this Monday, December 1, was approved. April.
VAT, which is currently 12%, will rise to 15%. On February 9, the National Assembly did not add the necessary votes to ratify the approved text that denied that Government proposal and since then it was known that such an increase would occur and the procedure was followed for the new tax rate to be applied from April.
The price increases for snacks, soft drinks, yogurt, alcoholic beverages and cigarettes range between $0.05 and $0.10. For example, the batch of personal-size flavored milk manufactured on February 7 has the containers marked with the retail price of $0.90 and the February 26 batch was already marked with the RRP of $1.
These changes have occurred in the last month, say the merchants who have kiosks in the university sector where the Pontifical Catholic University of Ecuador (PUCE), the Salesian Polytechnic University (UPS) and the National Polytechnic School (EPN) are located. around 12 de Octubre Avenue in Quito.
The response they received from the distributors was that they do it preventively. One of the merchants comments that he only noticed this increase a week and a half ago when he saw the acquisition costs of the lots, and then he checked the labels and indeed the price difference can be seen on the containers.
Santiago Guachamin, owner of a kiosk outside the Salesian Polytechnic University, says that the increase in prices of products has been occurring evenly for approximately a month since the VAT increase was known, but that distributors warned them that this Monday, April 1 When the new rate comes into effect, the products will come with the final increase.
