With decree 182, Ecuador eliminates the tax on the exit of foreign currency to airlines

Decree 182 establishes a 0% rate for transfers abroad or foreign currency transfers carried out by foreign airlines in the country.

President Guillermo Lasso signed on Thursday the decree with which he eliminated the tax on currency exit for airlines. In this way it seeks to relaunch connectivity and tourism, within theEcuador's reactivation plansto enter the postpania era of Coronavirus.

The measure, announced several weeks ago by the president, today took shape in theDecree 182 that establishes a 0% fee in transfers abroad or foreign exchange transfers made by foreign airlines in the country.

The Government expects to contribute to greater connectivity and competitiveness in postpania, will be effective within 15 days, period in which competent agencies must amend the legislation.

Ecuador began a process ofAir reopening in 2018 through the attraction of new airlines and connection with new destinations, although the pandemic threw down the three -year work.

The foreign exchange tax, equivalent to 5 percent, is one of the sources of income of the Ecuadorian treasury that generates almost one billion dollars a year, although President Lasso sees him as an obstacle to investment.

However, and although its goal is to remove it, it has confessed that there is no alternative to that income item and that it will do it progressively.