Banana Producers SRI calculation question

www.bananaexport.com

"We've been working hard on the issue of income tax, in fact before they take office, the Eco Carlos Marx Carrasco talked and I raise the issue of bananas. We explained that today the way we calculate the income tax for the rest of the country's productive sector, for the banana, especially medium and small is very hard. "

 

This expresses the President of the Federation of Banana Growers of Ecuador, Dr. Armando Serrano Carrion, a prominent Ab. Tax, who is also professor of law at the Catholic University of Guayaquil.

 

Says Dr. Serrano, that rapprochement with the director of CRS in its first time showed signs of understanding and sensitivity for the sector and the approach of the producers was 1 cent per box which increased significantly the official collection so far was given and was calculated by the same officer on two million four hundred thousand dollars. The contribution of 1 cent gave a very important quantum leap to $ 24 million was generated in the production sector and was going to state coffers.

 

According to Dr Armando Serrano the situation of small and medium producers, who are the majority in the case of producers of El Oro, becomes cumbersome due to the obligation to hire an accountant and keeping records of purchases and sales invoices for a period of seven years and in some cases much longer, which is an additional cost that may be considered a tax extra pressure because of the additional costs generated by creating unnecessary bureaucracy around the issue of payment of the tax what would end up costing more than the candle wick.

 

Banana leader expressed surprise at the official proposal as a tax of 2%. This site is not everything, "he remarks." There can be we are out of place. If the box at this time worth U.S. $ 5.40, it follows that we would have to be paying at the moment by way of income tax on equivalent to 10.8 cents per box, which has nothing to do with the original proposal we made 1 cent nor with his proposal of five cents, which we have been scared. We asked the President of the Republic we get to explain the issue and to have clear that an increase in such tax impact, as hard as this will cause a tingle in the impressive field. should be borne in mind that last year exports were very close to 1500 million dollars, this year with the increase of minimum support price should be very close to walking through the 1600 million. The 2% tax burden we are talking about a dramatically higher figure of which we had originally estimated. So that the transfer of resources from the banana industry to the public sector would be very hard, very sharp. "

Serrano explained that in all the meetings that were taken with the Eco Carlos Marx Carrasco, Director of SRI never speak of a tax that high. The producers say we raise 1 cent. The Director of SRI speak five cents. We found a very high figure. A banana ruling Gold I plan a weighted figure between one and five, then reached consensus on three cents. It seemed a bad figure and said he would think.

 

Dealt the blow Tax

Seven months ago, came the reply of the Echo Carlos Marx Carrasco with a flat refusal to approach the banana sector and the formal proposal of 2% Income Tax. This says Dr. Armando Serrano Carrion, Chairman of the Federation of Banana Growers of Ecuador, never agreed to the sector. It reveals that in neighboring countries like Colombia and Costa Rica agriculture is subsidized and given tax incentives to farmers and order that allows them to undertake operating in the fumigation of black Sigatoka fungus, because they want the farmer to continue on its work.