Special Consumption Tax (ICE)

The Special Consumption Tax (Impuesto a los Consumos Especiales or ICE) applies to specific domestic and imported goods. These include items like plastic bags, sugary drinks, non-alcoholic beverages, and carbonated drinks.

The tax rates vary. For example, imported vehicles are taxed at progressive rates ranging from 5% to 35%.

For products like cigarettes and alcoholic beverages, the tax is calculated based on the number of units produced or imported (for cigarettes) or the alcohol content (for beverages).

This tax is part of Ecuador's effort to regulate consumption and encourage sustainable practices. This tax is one of the reasons why imported goods are relatively expensive in Ecuador.

This tax was introduced by the government under President Correa in 2008 as a means of increasing tax revenues from more affluent people.