The President of the Committee on the Tax Regime of the National Assembly Nathaly Farinango (ADN) revealed that the tax reform envisages a significant reduction of value added tax (VAT) from 12 percent to 5 percent on construction materials.

The legislature is waiting for the President of the Republic, Daniel Noboa Azín, to send the text of the bill in order to know its content; But parliamentarian Farinango announced that the project has the necessary things for the country, such as tax reductions and tax incentives.

Daniel Noboa confirms that he will declare a state of emergency and that he will submit two urgent projects three days into his mandate

He said that the tax reform, which would have between 70 and 80 articles, would favor companies that generate new jobs for certain age groups and thus improve the economy of Ecuadorians, and recalled that the president stood up for Young.

Farinango clarified that the tax reform that will soon enter the Parliament does not generate new taxes, but reduces them in the case of VAT for construction materials, which will have a ceiling of 5%, because they know that “construction companies generate a lot of work within the country.”

After the project is submitted to the Tax Regime Commission, a socialization process will be opened among the members of the assembly in order to receive appropriate observations.

Farinango emphasized that there is a commitment of the 137 members of the assembly and the same commission he chairs to move the country forward. “And because we know that tax reform benefits the country, votes are at stake,” he added.

The PSC representative for the Galapagos, José Rogel, said that they would first wait for the emergency bill to arrive in order to issue the criteria and define the positions. What needs to be analyzed is whether the tax reform will benefit the majority of Ecuadorians.

If there is no increase in taxes and if there are incentives, especially for young people, and this does not affect the most dispossessed, there will be a positive response, but a complete revision of the proposal must be made. The aim of the reform must be to reactivate the economy and create jobs.

In the energy sector, the crisis must be analyzed and monitored, because there is evidence that there was a high degree of negligence in the outgoing Government, in fact, at the next session of the Supervisory Committee, measures will be taken in this regard, Rogel said.