Análisis del IVA en el mercado local del sector florícola y el efecto que causa en las florícolas medianas de Cayambe año 2021-2022

Abstract

This academic article examines the impact of the Value Added Tax (IVA) on local sales in the Ecuadorian floriculture sector, focusing on how this tax affects the competitiveness, profit margins, and economy of medium-sized flower farms in Cayambe. Over the past decades, the floriculture sector has grown significantly, becoming a crucial driver of Ecuador's economy. However, medium-sized flower farms face particular challenges due to IVA, which can diminish their competitiveness and development. The study reveals that these flower farms, unlike larger ones, have fewer resources to optimize their processes and mitigate the impact of IVA. This tax increases the cost of inputs, directly affecting profit margins and potentially reducing production. Additionally, medium-sized flower farms must implement strategies to adapt to these circumstances, but high demand and the inability to raise prices worsen their liquidity situation, as IVA on their sales is taxed at 0%. Another highlighted problem is climate change, which forces the purchase of more inputs to protect the flowers, and conflicts in supplier countries, which complicate product availability and increase prices. Despite these challenges, flower farms have had to raise their prices, leading consumers to seek cheaper substitute products, causing additional financial difficulties. The "Expoflores" association has tried to engage in dialogue with the government to reach agreements that benefit both parties, but they have not received satisfactory responses. This article aims to highlight the various problems faced by medium-sized flower farms in Cayambe due to IVA and how this tax affects their operations. It also analyzes how external conditions, such as climate and conflicts, directly influence the viability and profitability of these businesses, emphasizing the complexity of operating in an ever-changing environment.