What the tax will stop perceiving according to the Project of Organic law for Strengthening the family economy, which the executive power presented to the Assembly as an urgent economic request, will represent the net annual fiscal effect of 76.13 million dollars.

According to the report of the Ministry of Economy and Finance, the law determines the reduction of revenues for the state treasury. 196.5 million dollars. This, since a larger deduction is allowed for personal expenses of taxpayers based on number of dependent family members.

However, there will also be an increase in revenue due to reforms that correspond to:

So with addition and subtraction, the drop from tax revenue reaches 76.13 million dollars. According to the explanation of the Ministry of Economy, the application of the project strives for a simple, progressive, fair and efficient tax system that prevents tax evasion and avoidance and generates sustainable economic growth.

However, experts believe that The executive branch did not do a proper analysis of the fiscal consequences reforms, and in fact she asked for them political solution for the government.

In any case, although the Executive The bill was submitted on May 11, and since it is an urgent bill that must be resolved within 30 days, the Legislative Administrative Council (CAL) has not yet heard about the project. That body must send it to the Legislative Technical Unit to check whether the proposal meets the requirements so that it can then be sent to the appropriate committee. These days it is precisely the election of the new powers of the Assembly, and thus of the new HAL.

In accordance with Jaime Carrera, executive secretary of the Observatory for Fiscal Policy (OPF), Unfortunately, neither the state, nor the citizens, nor the rulers fully understand the fundamental problems related to the health of public finances. Explain that in this year –Until April– oil revenues are lower by 700 million dollars, tax collection has fallen, it is not expected that the 1000 million dollars of income from Sopladora will be realizednor the $200 million profit from the sale of Banco del Pacífico.

Meanwhile, social demands are increasing every day, so the costs are increasing. In this sense, he believes that the tax reform is not aligned with the policy of fiscal responsibility, but rather it would be a political proposal that would require both popular and legislative support to get out of the impeachment crisis. “It is something demagogic that corresponds to the political blindness that exists in the country.” He assures that last Friday the cash balance was $600 million, which is a very low balance.

In the meantime, for Santiago García Álvarez, president of the Pichincha College of Economists, Sending the tax reform has more of a political component, thinking in the context of the trial conducted in the Parliament, than a fiscal or economic reason. This would in some way try to gain the support of the middle class, which is affected by the tax reform, or send a message that the government cares about this sector.

He believes that another precedent that led the Government to the decision to reform the tax issue is that the Constitutional Court declared the issue of Rimpa partially unconstitutional and requested changes to make the collection more progressive, which was previously a fixed issue.

As for the economic García says that the results of the tax reform from 2021, which came in the Law on Economic Development, have not even been assessed yet, and a new reform is already underway. We were still waiting for evidence to evaluate the reform from 2021. They wanted to see what the effects were on each segment of the population, whether the reform was truly progressive, how many people were included in the tax base, among other things. In that sense believes that the reform was made without objective data.

Meanwhile, he believes that while the fact that tax cuts leave families with more resources available, the amount is small compared to household spending of $60,000 million. Regarding the issue of tax collection on sports forecasts, the law would not have a collection purpose, but generate tax fairness.

Alberto Acosta Burneo, editor weekly analysis, He said on social networks that with this reform, as the Government itself says, it wants to relieve taxpayers. However, make it clear that it means to seek correct the law that the Government itself sent and which was approved in November 2021. He reminded that the Government said then that the reform affected only 4 percent of the population, and now admits that it was too impressive. He also noted that There is no correlation between increasing taxes and improving fiscal accounts, since the country has a weak institutional framework, every time taxes increase, fiscal spending also increases.