System of recommendations for the tax system as an instrument of general economic policy

Abstract

The Ecuadorian tax system is made up of the set of rules that regulate the main source of income for the State and subnational governments. The purpose of this research is to develop a system of recommendations for the tax system as an instrument of general economic policy. In accordance with article 5 of the Tax Code, it was determined that through exemptions certain activities are encouraged, and by establishing new taxes others are discouraged. The evolution of Ecuadorian legislation in relation to regulatory taxes was verified, contrasted with the opinion of experts in the field, establishing that in the environmental issue it has not lagged behind despite the existence of the appropriate legal framework. The results pointed to the need to develop a system of incentives that protect the environment, consequently it was concluded that it is necessary to develop specific exemptions for economic activities through municipal laws and ordinances materializing the non-collection purpose of taxes.