Tax collection, interest remission, fines and surcharges of the Babahoyo Municipal Government (Original)

Abstract

This article analyzes the policy of remission of interest, fines, and surcharges implemented by the Decentralized Autonomous Government of Babahoyo, within the framework of local tax management as a tool to strengthen fiscal sustainability and public investment. The general objective is to evaluate the impact of the remission of interest, fines, and surcharges on tax collection efficiency in the Babahoyo Municipal Decentralized Autonomous Government. The research adopts a qualitative-quantitative methodological approach, applying scientific methods such as the analytical-synthetic, exegetical, and inductive-deductive methods. These are implemented through documentary review, interviews with officials, and surveys of taxpayers. The results show that, following the implementation of the ordinance, there was an increase in payment regularization and a temporary improvement in municipal liquidity. However, challenges remain related to tax culture and the limited dissemination of the regulation. It is concluded that, although remission may be effective in the short term, its sustainability depends on proper technical design, institutional transparency, and strategies that strengthen citizens' commitment to their tax obligations.