Socioeconomic Impact of VAT Refunds for Elderly Retirees in Pichincha, 2023–2024

Abstract

Limitations in the capacity of tax compensation mechanisms to significantly improve the economic well-being of older adults, particularly in contexts where income depends primarily on pensions, provide the basis for this study. Accordingly, the research analyzes the socioeconomic impact of Value Added Tax (VAT) refunds on retired older adults in the province of Pichincha during the 2023–2024 period, considering their effects on disposable income and quality of life. A quantitative approach with a non-experimental design was employed, using secondary data from administrative records and applying descriptive statistics, mean comparison tests, and a regression model to identify relationships among variables. The results indicate that VAT refunds represent a consistent but low-magnitude complement to total income, with no significant differences between the years analyzed, while disposable income is largely determined by pension levels. In addition, relevant differences between men and women were identified, suggesting potential structural inequalities. From an analytical perspective, these findings are consistent with previous studies highlighting the limited impact of indirect tax benefits compared to structural income sources, although they still contribute to basic consumption. It is concluded that this mechanism serves as a form of economic support; however, it presents limitations in its redistributive scope and in the efficiency of its implementation.