Ecuador is suffering financially from the low price of oil on the international market. And now Ecuador must rebuild the coastal areas that were struck by the 7.8 magnitude earthquake on April 16, 2016 (and subsequent aftershocks). Hence, new and/or increased taxes have been passed:
1) Tax on Cigarettes: old tax 0.131 per cigarette, new tax 0.16 per cigarette: (22% increase)
2) Incentives to use Electronic Money: old tax: 0%, New Incentive: devolution of 2% of the IVA if the bill is paid electronically. (Credit Card / Debit Card / EFT)
3) Alcohol: Old Tax $7.24 per liter of alcohol content. New Tax $12 per liter of alcohol content. So, for example, a liter bottle of liquor with, say, 40% alcohol by volume used to pay $2.90, will now pay a new tax of $4.80 per bottle. (a 65% increase). The tax on a half-liter bottle of beer will go up from $1.05 to $1.18, however if you pay with your CC or Debit card you get back 2% of the IVA (see above)
4) Sodas and sugared soft drinks: Old Tax: 10% per each 25 grams of sugar content per liter. New Tax: $0.18 per each 100 grams of sugar in each liter. (Juices and Energy drinks are excepted)
5) Purchase of automobiles by handicapped persons: Old Tax: Tax exempt for a value of up to $ $43,200. New Tax: Tax exempt for up to $21,960.
6) IVA returns for 65-and-over Seniors and Handicapped with 40% or more: Old amount; Maximum of $219 per month. New amount: Maximum of $87.84 per mo.
7) Limits on Currency Exit Tax: Old limit: a maximum of $11,170 Tax free cash could be carried out of the country. New Limit: Maximum of $1098 cash can be carried out of the country per adult traveler, plus $366 per each accompanying minor.
8) Money EFT Transfers from Ecuador to abroad: Old limit: $1000, twice per month, tax free. New Limit: $1098 Tax Free (not specified how often but probably per month.) Foreign transfers for student’s tuition and expenses are exempt.
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