Ecuador increases excise duty on telephony and TV services

6 Jan 2020

New tax legislation governing the application of the special excise duty applied to telephony and subscription television services was passed into law by Ecuador’s parliament on 30 December 2019. Under the new taxation regime, a monthly 15% excise duty will be levied on fixed telephony services and mobile plans providing voice, data and SMS services to business customers, while a 10% rate will be applied to consumer post-paid mobile services with effect from 1 January 2020. Subscription television services will be subject to a 15% rate. The new duty is in addition to the 12% VAT rate already applied to mobile services. Asetel, the telecommunications industry trade body, has warned the new tax will have a major impact on consumers, thereby hampering the government’s ambition to improve connectivity rates in the country, reports TeleSemana.