The The Constitutional Court has given the green light to a decree that allows tax cuts for thousands of Ecuadorians, but he also denied the possibility of a new and improved system of attracting investment through free zones. Both emergency decrees on economic issues were sent by the President of the Republic, Guillermo Lasso, after the death cross.

The Constitutional Court issued an official statement a few minutes ago stating that the plenary session of the Constitutional Court, on June 16, at an extraordinary session, considered and resolved cases 1-23-UE and 2-23-UE, related to the decrees of the economic emergency law which issued by President Guillermo Lasso Mendoza.

As for the first case, which refers to the reduction of income tax, through the deduction for family obligations and the establishment of the Rimpe system, unanimously and with the consent of Judge Carmen Corral Ponce, The court gave a positive opinion on the Draft Decree-Law entitled “Organic Legal Decree for Strengthening the Family Economy” Well, he thought so No obvious or notorious disagreements with the Constitution were previously established during the previous constitutionality check.

Consideration the second reason, which proposed instead that there should be a new system of free zones that would better attract foreign and national investment, unanimously and with the same votes of Judge Carmen Corral Ponce and Judge Richard Ortiz Ortiz, Constitutional Court issued an unfavorable opinion regarding the Draft Decree-Law entitled “Reform of the Organic Law for Attracting and Promoting Investments for Productive Development” considering that they do not respect its provisions Article 148 of the Constitution.

Both opinions clearly stated that Article 148 of the Constitution establishes that the Constitutional Court issues a preliminary opinion on constitutionality on proposals for decrees on economic urgency that the President of the Republic adopts until the appointment of a new convocation of the National Assembly for which “It is up to him to check that, preliminarily, there are no obvious or evident regulatory incompatibilities in its content”.

According to the Court, this it does not imply that this body becomes a political actor or co-legislator — that it assesses the appropriateness of regulations-laws in this period — or that their constitutional control can compensate for the absence of parliamentary discussion, since their role is exclusively jurisdictional.

for his part, The Minister of Economy, Pablo Arosemena, had one of the first reactions when he announced that the decree-law had just been approved, and that with it the Government lowers taxes for 99.8% of taxpayers and benefits 340,000 families, 500,000 entrepreneurs, 100,000 city transport operators and a half. million craftsmen. yourHe also pointed out that several taxes were lowered in President Lasso’s government. “We are cutting taxes to boost your economy,” the minister said in a video he posted on his social networks.