Fiscal incentives to promote sustainable practices in the food sector in Machala, Ecuador

Abstract

Environmental impact refers to the effects that human activities, in this case business activities, have on the natural environment. The study analyzes the environmental impact of the food sector in Machala, Ecuador, and how fiscal benefits, such as income tax deductions, can boost business sustainability. The problem identified is the low take-up of these incentives due to lack of regulatory knowledge. The objective was to design good tax practices that encourage the adoption of sustainable practices. The method used was a mixed approach, non-experimental, with surveys and documentary review. The results show that most companies are unaware of or do not apply deductions for recycling, renewable energies or environmental training. It is concluded that strengthening tax education, improving regulatory dissemination and establishing alliances between companies and tax authorities can promote sustainability, reducing environmental impact and strengthening business competitiveness.