Constitutional Judge Alejandra Cárdenas set for Tuesday, June 6, at 10:30 a telematic public hearing for the revision of the decree of the law on economic urgency with the Organic Law for strengthening the family economy, with which the Government wants to implement tax reform.

President Guillermo Lasso was called to diligence; Minister of Economy and Finance, Pablo Arosemena; and the Attorney General, Juan Carlos Larrea.

In an order issued by the judge on the afternoon of Thursday, May 25, Judge Cárdenas asked the president to submit a report to the Constitutional Court (CC) within three days explaining the reasons for the economic urgency of the decree.

He also organized posting of the decree on the Court’s website and inviting the public to present amicus curiae.

Tax reform was the first legislative decree presented by President Guillermo Lasso on May 17, after he activated the cross of death and dissolved the National Assembly. If it passes the filter of constitutional control, the law will enter into force.

According to the Executive Office, the emergency economic bill will cut taxes, strengthen the economy of 460,000 families and mean that nearly $200 million will go back into the pockets of taxpayers.

The norm envisages changes to the Law on the Internal Tax Regime. To change the scheme of benefits for the payment of personal income tax, which will now be higher the more the taxpayer has family obligations, and to reform the table. They will be able to deduct up to $15,294 a year for personal expenses.

In addition, the tax regime for entrepreneurs and popular companies (Rimpe) has been adjusted so that popular companies with annual sales of up to USD 2,500 do not pay income tax when their sales exceed this value (up to USD 20,000).

The novelty is the introduction of a single tax of 15% for sports forecast holders and the abolition of the exemption from value added tax (VAT) of 12% for public broadcasts.