The measure was taken due to the current plight that companies exporting the product are undergoing, as well as to the increase in supply from competing countries.
The government's Executive Decree 136 states the reasons why they won't charge the broccoli producing-exporting sector one hundred percent of the Income Tax.
According to the document, the current situation that exporters are facing is adverse due to the confluence of several factors, such as the increase in supply of the product by competing countries that reduced domestic exports, as well as the damage caused by the climate in the province of Cotopaxi, the main production area, which has caused a considerable increase in production costs and a drastic reduction in production levels.
This is compounded by the request of the Ministry of Agriculture and the Internal Revenue Service's fiscal impact report, which led the government to consider it necessary to grant the broccoli export sector the exemption from the value of the advance payment of income tax.
The productive sector generates approximately 5,000 direct jobs and 15,000 indirect jobs.