Urgent economic project that enters the analysis in the National Assembly would reform 19 laws

There are 19 laws that would reform the draft Organic Law on Economic Development and Fiscal Sustainability, sent last Thursday to the National Assembly. On the afternoon of this Tuesday, November 2, the Legislative Administration Council (CAL) described this proposal sent by President Guillermo Lasso as urgent economic.

The Organic Monetary and Financial Code, the Hydrocarbons Law and the Regulation of Credits for Housing and Vehicles are some contemplated in the document.

For example, the Internal Tax Regime Law includes reforms of goods with zero VAT rate such as glucometers, lancets, test strips for glucose measurement, insulin pumps, pacemakers, masks, oximeters, alcohol and antibacterial gel higher than 70% concentration.

As well as sanitary pads, tampons, menstrual cups and popular disposable diapers, according to the definition established in the regulations of this law.

In article 11 on the validity of the Tax Code a numeral is added on the fact that resolutions, circulars and other regulations of an administrative nature, in no case may alter or change the meaning of the law or expand or restrict its scope.

At General Organic Code of Processes It is proposed to add a subsection to article 76 on the judicial term.

Income tax proposal maintains hike for those who earn more than $ 2,000 a month, higher charge will be applied on $ 5,000

“In tax matters, the suspension of terms in the case of presentation of a request for mediation proceeds, in accordance with the rules set forth in the Tax Code ”.

For him Administrative Organic Code is proposed to eliminate a sentence of the Third General Provision: “With the exception of the provisions of article 185 of the Organic Tax Code, which is repealed, due to the effects of the basis for auction bids, the provisions of the Organic Administrative Code must be observed.”

This provision would remain: In the tax area, the provisions contained in the Organic Tax Code and other regulations in force are applicable, however, the provisions of this Code will be applied in a supplementary manner.

Meanwhile, in the Organic Law of Special Regime of the province of Galapagos It is proposed to replace article 68 that deals with the prohibition for the granting of a tourist operating permit in the protected area with the following: “The union or association of tourist operation contracts for the operation of a single vessel is prohibited.”

Currently, this article says that more than one person per family is prohibited, for which purpose kinship will be considered up to the second degree of consanguinity and the first degree of affinity. Also that natural and legal persons and their parties may not be awarded more than one tourist operating permit and others.

Refering to Organic Law for Productive Development, Attraction of Investments, Generation of Employment and Stability and Fiscal Balance It is intended to eliminate the articles of Chapter II of specific incentives to attract private investment and those of low-income housing. These are from 26 to 34 and the Third Transitory Provision.

For example, article 29 refers to the exemption from income tax for investments in basic industries and article 32 speaks of responsibilities in the execution of construction plans, programs and projects for low-income housing.

With a greater contribution for companies with more than $ 5 million of equity, a new tax proposal came to the Assembly

In the Hydrocarbons Law plans to suppress articles 13, 14 and 15. These deal with the meaning of the association contracts, how they will be agreed on the scale of participation of each of the parties and what will be stipulated.

Below the list of laws that contemplate reforms in the project sent by the Government:

1. Organic Monetary and Financial Code.
2. Administrative Organic Code.
3. General Organic Code of Processes.
4. Organic Code of Planning and Public Finance.
5. Organic Code of Production, Trade and Investment.
6. Organic Code of the Judicial Function.
7. Internal Tax Regime Law.
8. Organic Law for the Optimization and Efficiency in Administrative Procedures.
9. Organic Law of the Special Regime of the Province of Galapagos.
10. Organic Law for Productive Development, Investment Attraction, Employment Generation, and Fiscal Stability and Balance.
11. Organic Law of Telecommunications.
12. Hydrocarbons Law.
13. Reform Law for Tax Equity of Ecuador.
14. Single Taxpayer Registry Law.
15. Law for the Creation of the Internal Revenue Service.
16. Organic Law for the Regulation and Control of Market Power.
17. Organic Law for the Regulation of Credits for Housing and Vehicles.
18. Organic Law of Entrepreneurship and Innovation.
19. Ecuadorian Quality System Law. (I)