HomeBlogNationalPresident Guillermo Lasso announced the elimination of the tax on the exit of foreign currency for air ticket transactions

President Guillermo Lasso announced the elimination of the tax on the exit of foreign currency for air ticket transactions

  • August 3, 2021
  • Posted by: medium
  • Category: National
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Government consulted the State Attorney General on the subject.

President Guillermo Lasso announced on Friday afternoon that the tax exit tax (ISD) will be eliminated for all the transactionality ofticketsaerial in order to promote tourism in the country. These statements were made during a tour in the facilities of the DP World Port Terminal, in the Guayaquil Postorja parish (Guayas).

Lasso said that from the government the Attorney General's Office was consulted for the possibility of reducing or eliminating this tax and it indicated that it is possible based on sectors of the economy.

This suppression will be formalized during this week, said the president.

Together with Lasso were the Ministers of Transportation, Marcelo Cabrera, and Production, Julio José Prado, and the businesswoman and executive president of the Nobis Consortium, Isabel Noboa.

Prado highlighted the importance of eliminating this tax in the air sector to attract investments and remove commercial obstacles.

"You cannot remove the entire ISD because it represents more than one billion dollars in fiscal sacrifice, but we can in some aeronautical sectors, aviation to lower it immediately to allow an open skies policy," he said.

Prado mentioned that several international companies were waiting for this announcement and added that the Ministries of Tourism, Finance and Production worked to the extent.

"This will reduce passages costs, it will allow more exports through airplanes and more imports for the same mechanism," he said.

After knowing the government decision, the airlines began to react with optimism. "From Avianca we applaud the government's announcement to eliminate the ISD for air tickets transactions. This measure is the result of a deep coordination between the aeronautical guild, airlines and authorities, actors who know the potential of tourism for the development of a nation and that we have as the main interest to boost connectivity from and to Ecuador," said David Alemán, director of Avianca for Central and South America.