Análisis del beneficio generado en las empresas automotrices por la baja del porcentaje del ISD, en los periodos 2022 y 2023 en la administración zonal Quitumbe y Eloy Alfaro

Abstract

This study examines the economic effects of the reduction of the foreign Exchange Output Tax (ISD) in the Ecuadorian automotive sector during 2022 and 2023. The ISD is a tax created to protect dollarization and encourage national investment. However, when it was carried out, vehicle production costs increased, impacting both businesses and consumers. To alleviate these burdens and increase the competitiveness of automotive companies, the reduction of ISD has been implemented in recent years. The objective of this research in to evaluate the economic effects of this decrease in the local administrations of Quitumbe and Eloy Alfaro. The general objective is to evaluate the economic effects of the reduction of the ISD in automotive companies during 2022 and 2023. The specific objectives are: 1) Determine the importance of the ISD in the automotive sector; 2) Determine the variations and their effects; and 3) Determine the tactics used by companies to maximize the benefits of DST reduction. The theoretical framework is based on a review of ideas about regulatory taxes and their impact on the economy. To contextualize the importance of the ISD and its impact on the Ecuadorian economy, references from several authors are used. According to the study, the reduction of the ISD has improved the competitiveness of automotive companies, reducing production costs and operating expenses. In addition, important methods were discovered that companies employed to take advantage of the benefits of the DST reduction, such as increasing the import of components, Key parts and negotiated trade agreements with foreign suppliers at discounts. Finally, the reduction of the DST has benefited the automotive sector by increasing domestic demand and increasing competition with imported vehicles. However, it is essential that fiscal policies remain tight to maintain a balance between protecting the domestic market and competition from automobile companies.