President Guillermo Lasso celebrated the positive opinion of the Constitutional Court (CC) which put into force the Law on the Family Economy Decree, presented by the President after the activation of the death cross, on May 17.

The Court’s verdict was passed on the afternoon of Friday, June 16, and not long after, Laso announced himself on social networks. He emphasized that the law “allows $195 million to stay in homes, and thousands of popular companies do not pay taxes.”

“This decision is in favor of 400,000 families who will have more budgets for consumption, savings and investments,” said the head of state and announced, without further details, that in the coming days he will send three new decree laws on economic issues.

Laso did not comment on the Court’s second opinion, which rejected the draft Decree of the Law on Attracting and Encouraging Investments.

The economic law that will now be implemented includes the reduction of income tax, through deductions for family obligations and the establishment of the Rimpe system. The level of deductions for expenses has been increased to $15,294 per year, which includes expenses related to pets.

A tax is being introduced for sports forecast operators, and a 12% Value Added Tax (VAT) will apply to public events.

The Constitutional Court unanimously gave the green light to the decree law and with the consent of Judge Carmen Corral Ponce. The body assessed that no obvious or notorious disagreements with the Constitution were previously established in the previously conducted constitutionality control.

The director of the Tax Administration (SRI), Francisco Briones, also welcomed the court’s decision. He emphasized that by applying the tax reform, families will have more budgets and less income tax payments.

“More simplification of tax payment. More formalization and control. Excellent news for the Ecuadorian economy,” Briones said on social media.