The President of the Republic, Guillermo Lasso, will announce the tax reform this Thursday, May 11, at 10:00 a.m., at the Palacio de Carondelet.

It has been announced by several government bodies that the executive power will present the reform these days, as they stated, it is correct and consists in the re-establishment of deductions that until now allowed personal expenses to be discounted for paying income tax.

The government minister, Henry Cucalón, indicated this Wednesday, May 10, that it will be an urgent economic project and confirmed that it will only apply to the tax area.

The new tax reform will benefit people who earn between $800 and $3,000

“Its central core is related to deductions that will favor the large middle classes in a dependency relationship. It is a very small reform, the details will be explained in the presentation by the Minister of Economy”, he specified.

Currently in force is the Organic Law for Economic Development and Fiscal Sustainability, which applied higher taxes to the wealthiest sectors and included a component of higher taxes from 2022 for the middle-class sector that earned more than $2,000 per month. Then the Government claimed that it only affected the top 4% of the population.

In some cases, the amount paid for income tax has more than doubled.

The executive authority first announced that it would send the bill on May 8, as Minister of Economy and Finance Pablo Arosemena said a few days ago. But that didn’t happen.

‘Tax reform will benefit the dependent middle class’

Later, the director of the Internal Revenue Service (SRI), Francisco Briones, indicated: “The president will present it in the coming days or weeks and he will be in charge of telling them.”