Effect of Taxes on Automobile Demand in Ecuador
DOI:
https://doi.org/10.18779/csye.v4i1.290Keywords:
Taxes, demand, restrictions, automotiveAbstract
This paper analyzes the importance of taxes and the effect that they cause in the demand for luxury goods, defining and focusing the case in the automotive industry, which has had a deteriorating pronounced in sales in recent years. The common conclusion is that increasing taxes as an economic measure decreases the level of sales especially when treated special consumer goods. In this sense the objective proposed in this paper is to analyze five taxes that should be canceled from the vehicles entering the country for their respective nationalization and marketing. It has been used methodology of analysis and synthesis of documents, applied with figures of the automotive sector for the period 2011-2016, provided by automotive companies of Ecuador (AEADE) Association and the Chamber of Ecuadorian automotive industry (CINAE). The study is important because it helps determine the incidence that have restrictions in the sector and the causes that have led the Government to take these steps.
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