Efectos de la aplicación del Decreto Ejecutivo N. 211, por el incremento del IVA en las empresas del sector florícola, frente a la reducción al 5% en las empresas del sector de la construcción; un análisis comparativo

Abstract

The purpose of this research es to comparatively examine the impacts resulting from the implementation of Executive Decree N. 211, published in January 2024, wich mandates an increase inthe Value Added Tax from 12% to 15%in general terms, with the exception of the construction sector, wich retains a rate of 5%.This fiscal strategy aims to increase tax revenue to combat our country fiscal déficit; however, its implementation has different economic effects on the main productive sectors. This research focuses particularly on two industries: floristry and construction. For the floristry sector,which is heavily focused on exports but also depends on domestic consumption and the purchase of local materials, the VAT increase means higher operating costs, impacting its profitability and competitiveness.However, the construction sector benefits from the tax reduction, wich encourages private investment, the hiring of workers, and economic growth al both the urban and rural levels. Given the above, a comparative and quantitative approach will be taken, trough the study of financial statements, profitability indicators, and surveys conducted in the respective departments representing these sectors. Initial findings show a negative impacto n the results and net profits of floriculture companies dhow more consistent profit margins after implementingthe fiscal stimulus. This contrast shows an asymmetrical fiscal approach, which can causes alterations in the sectoral balance and tax equity. It also suggests the need for the state to carry out a technical evaluation of the effect of differentiated fiscal policies, taking into account the viability of key sectors such as floriculture, wich generates foreign Exchange and Jobs in rural áreas.