Analysis of the value-added tax in front of the principle of progressiveness in Ecuador

Abstract

The improving of democracy of any country, as well as its indicators of equity and justice, are based on the permanent review of the normative system, according to the experiences, the international practice, the juridical doctrine and moral values that the society promotes in aggregate. The tax code applied all over a nation, illustrates the materialization or not of such objectives, given the supreme goals of well-being and good living. To achieve those purposes, it is required a technical juridical analysis of the premises that inspires the legal order in that matter. In coherence with that idea, the present paper accomplishes a revision of the correspondence between the value-added tax (VAT), and the constitutional principle of progressiveness. A preliminary look suggests a contradiction existing in the way in that the Ecuadorian legislation implements this tribute and the equitable spirit of the letter of the constitutional text. As from a compared analysis of the national and international doctrine on this topic, the revision of the regulations in force, and after considering different alternatives, the author led proposal of normative modification intended to achieve a better redistribution of the richens. This study appraises the implications of this eventual reform and its possible impact in cost-reducing, social and legislatives terms.