New Sales Tax increase implemented in Ecuador

InflationLast week, Ecuador raised its Sales Tax from 12% to 14%. Although the Ecuadorian President “sold” this to the people of Ecuador as a direct measure to help overcome the terrible losses of the recent earthquakes, the long-term result will undoubtedly be an inflation increase in the country which will affect everybody. The cost of the materials will go up, labor cost will be rising to offset the increased expenses for the people, and farms will need to raise their prices. We are not necessarily expecting this to happen in the immediate future, but this might be a good time for all wholesalers to review their standing orders, and lock in some items at advantageous prices while you still can. Please contact us for more information. Have a great week!