Ecuador will eliminate the money outflow tax for airline tickets
Ecuador has a money outflow tax (also called money exit tax) of 5% for every dollar that is taken out of the country. Today, President Guillermo Lasso that Ecuador will eliminate the money outflow tax for airline tickets.
The president wants to eliminate the money outflow tax for all economic sectors, but Ecuador cannot miss the total income from this tax, which is USD 1 billion per year.
The president believes that eliminating the money outflow tax for airline tickets will favor tourism. Besides the money outflow tax, the president also wants to eliminate the so-called eco delta tax, which is $50 for every ticket for an international flight departing from Ecuador. The government estimates that the elimination of both taxes will generate around 70,000 new jobs and almost USD 990 million in additional economic contribution.
The reactions from the airline sector are positive. Marco Subía, head of the Association of Representatives of Airlines of Ecuador, said that the measure is positive and will allow unblocking the signing of open skies agreements, especially with the United States. "It will open many doors and allow new airlines to arrive in the country," he said.
Source: El Comercio.