Tax collection and poverty reduction in Planning Zone 3, period 2018-2023

Abstract

Tax collection is key to financing poverty reduction policies in Planning Zone 3 of Ecuador. However, tax evasion, informality, and tax inefficiency limit the equitable redistribution of resources. Although strategies have been implemented to strengthen collection and finance social programs, gaps in access to basic services, health, education, and employment persist. The objective of this research is to analyze the relationship between tax collection and poverty reduction in Planning Zone 3 during the period 2018-2023. A quantitative applied methodology was used, with an explanatory approach. The data were obtained from the National Institute of Statistics and Census and the Internal Revenue Service. The main results highlight that the increase in tax collection in Planning Zone 3 appears to be related to poverty reduction, since higher tax revenues have allowed social programs to be strengthened. While the reduction decreased between 2018 and 2021, poverty remained high; However, its recovery since 2022 coincided with a reduction in poverty. This highlights the importance of efficient tax management and strategic resource allocation to ensure a sustainable impact.