The Commission for Economic Development will propose to the plenary session of the National Assembly to remove from the emergency bill on economic efficiency and employment the text related to the collection of tax on income from real estate transactions.
This was announced by the president of the legislative committee, Valentina Centeno (ADN), who also said that the issue of deadlines was reconsidered and it was agreed that the report for the first debate would be ready for Friday, December 8, because the assembly is the committee members agree on the macro concepts laws such as attracting investments through free zones, public-private alliances and the concept of job creation through tax incentives.
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The government legislator explained that the part on real estate income tax will most likely be omitted from the law, but the refund of the value added tax (VAT) on construction materials will be retained, since the spirit The proposal is that ordinary citizens who want to invest in construction materials they do not have to pay VAT, which will encourage construction, but also housing infrastructure.
Centeno said the real estate sector should be calm, because the spirit of the law is not to influence or benefit construction unions or real estate entrepreneurs, but to benefit ordinary citizens when they buy materials to build their homes.
Therefore, he announced that the entire section on the application of income tax on real estate, which was one of the problems, will be removed from the bill.
What the committee is currently analyzing is whether the VAT refund for the purchase of construction materials is automatic or of a different nature.
The legislator who presides over the Committee for Economic Development called on members of parliament and citizens to put aside their fear of public-private alliances and put aside the concept that the participation of private individuals in a project is privatization, when it is simply participation in structuring projects. which are profitable above all for the state and citizens of Ecuador, but have private participation.
He even said that in the speech of the Minister of Transport and Public Works Robert Luque before the table for economic development, he referred to public-private alliances, where he said that only 17 percent of the country’s road infrastructure is under concession and this percentage is very low compared to neighboring countries. countries.
Valentina Centeno commented that public-private alliances are designed for all sectors, including the health and education sectors, and for different sectors, even at the table it was commented that in Chile prisons are concessioned and work very well with public-private alliances.
He explained that the rule will explicitly state that public-private alliances will not allow privatization, that is, structures and projects that go through a favorable executive authority report, which must prove profitability for the state.
He also said forgiveness of interest, penalties and charges would be part of a bill that would mean an annual charge of about $900 million. The forgiveness of letters, fines and interest is just because it is, the official said.
The Minister of Transport and Public Works pointed out that there is a big gap in the road infrastructure in Ecuador, not only in that sector, but also in the energy sector, and the idea is that with public and private alliances, in the medium and long term, the quality of investments can be under legal framework that allows the implementation of several projects in some areas.
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