Sunday, September 12, 2010

taxes and then some


Last week I received a note to go the post office and pick up a package. After finally finding the post office I get there and I have to pay to pick up my package. Why? Because of taxes on imported items. If an item is considered a 'luxury' and not needed to live--then it gets taxes pretty heavy when it is imported. President Correa's economic policy reflects on buying items in the country rather then sending your money out of the country.

Myself and many others in my program packed little when we packed up for our semester here because we figured (and we were told by many people) that South America is cheap. No problem--pack what you need, buy what you want when you arrive. However, because everything that is imported is taxes (up to 30% depending on the item) prices here are just as much or more than they would be in the states.

A few examples:
  • a sweater here is easily $30-$50 while you can get cheaper ones of the same quality for $20-30$ in the states
  • Imported shampoo and conditioner is $15 here and and $8-$12 in the states
  • SHOES--oh my gosh-- a pair of shoes at a Payless here can run from $40-$90 easily where in the states Payless usually does not run over $30 (all shoes here are expensive though)
  • Converse sneakers are $90 here and $50 in the states
It was a disappointment when I arrived to see the prices, however, it has also made me more aware. Now when I shop, I look for the yellow, blue, and red spiral thumbprint that says the product was made in Ecuador--therefore making it the cheaper. It's like buying the store brand vs. the name brand. It's also interesting to see which companies have factories in Ecuador--some that are United States-ian (lay's chips, coca-cola) and therefore the same price as the Ecuador brand.

It makes you more aware as a consumer and I think do I want to save $1.00 or just pay it? A dollar, not that much--but here, that's my bus fare for two days. I could ride the bus more and just eat the cheaper and generally same food. But then again--ONE DOLLAR or thrity-five cents? I am getting hung up on less than a dollar? It makes me feel like a cheap United States-ian as I attempt to rip off the already impoverished and cheap country. I should feel lucky that I can buy a bottle of soda for .35 or a a piece of fruit for .10.

But instead, all I see are the higher prices and ways to save money like any college student would. It's a hard choice that I face everyday--take the $1.00 taxi and get there quicker or walk fifteen to twenty minutes instead. I can easily spend all the money I would like here and not save as much and be fine for the most part. Or realize how I spend my money and save the quarters and dimes as much as I can.

No comments:

Post a Comment