Tax changes in Ecuador and their economic effects on the productive and commercial sectors in the years 2002, 2003 and 2004

Abstract

The research analyzes the tax reforms implemented during this period and their impact on the national economy. These reforms included modifications in direct and indirect taxes, such as the Value Added Tax (VAT) and the Income Tax, aimed at increasing tax collection and stabilizing public finances after the economic crisis of the late 1990s. The study evaluates how these measures affected the productive and commercial sectors, highlighting both their benefits and limitations. On the one hand, greater tax revenues were achieved, but, on the other, significant challenges were identified for small and medium-sized businesses, such as the growing tax burden and economic informality. The analysis concludes that, while the reforms contributed to fiscal sustainability, a more balanced approach is necessary to promote economic growth and business competitiveness.