Mechanism to apply automatic drawback for exporters is included in the draft executive decree

The document is already in analysis in the Legal Department of the Presidency of the Republic, according to Minister Iván Ontaneda.

The mechanism ofdrawbackautomatic, a tax return system for the export sector, which includes theTax Simplification and Progressive Law, published on December 31, 2019 through the first supplement to the Official Registry No. 111, and in force since January 1, 2020, it would be about to be applied.

This, once the Minister of Production, Foreign Trade, Investments, Fisheries and Aquaculture, Iván Ontaneda, said Tuesday, during an extraordinary board of directors of the Export and Investment Promotion Corporation (CORPEI), that there is an Executive Decree project to apply the benefit that is already in the Legal Department of the Presidency of the Republic.

However, this mechanism is not new for the export sector. In 2015, during the Rafael Correa government, it was created in order to return a percentage of taxes on exporters of non -traditional products with the purpose that they do not lose competitiveness in the international market, however this benefit did not crystallize and, for example, in the first two years of the measure the government owed to exporters around$ 160 million.

Meanwhile, Ontaneda acknowledged that the export sector for many years has not had the necessary impulse, even in the current government, so that it grows not $ 15,000 million, but $ 20,000 million or $ 30,000 million; After highlighting that in 2020, Ecuadorian non -oil exports grew 10% With respect to 2019 exporting more than $15 billion to the different markets of the world.

Ontaneda said that thedrawbackBecause the resources were not had, but assured that the export sector has now been prioritized. "I think it is important that the export sector has a preferential tax policy," said the minister, who stressed that the export sector was one of those that was not paralyzed during the pandemic, despite the fact that 80% of the productive apparatus stopped.

In this context, he highlighted the $ 3.8 billion of exports generated by the shrimp, the $ 3.5 billion of the banana, to fishing with $ 1.7 billion, and others.

Regarding the attraction of investments, Ontaneda also announced that in the next few days more than10 Contractsinvestment for$ 200 million,corresponding to sectors such as bananas, commerce, tourism and others.

In the field of commercial agreements, Ontaneda also highlighted those signed with EFTA, with the United Kingdom, where exports have increased 9%, with Mexico, Chile that in 2020 was the eighth destination of exports with more than $ 200 million.

"Today Ecuador with the signature of commercial agreements is able to directly search for the markets," said the minister, adding that in the coming weeks "you can unlock" the entrance to the Block of the Pacific Alliance because "they are working in the terms of reference."