The groups of the Civil Revolution (RC), the Social Christian Party (PSC), the Construye movement and Pachakutika are ready to prevent the urgent project that proposes to increase the value added tax (VAT) to 15%, due to a lack of votes and support in the National Assembly, from entering the Ministry of Law enters into force upon the expiry of the 30-day period for its processing.

The Legislature has until February 10th to accept in two hearings the organic bill on the financing of the internal armed conflict, social and economic crisis in the country, but could not comply with the established schedule and approve the report for the first hearing last Sunday, January 21st. , due to lack of consensus. The committee has until this Tuesday, January 23, to present its first report.

The scenario in which an urgent project sent by the executive power passes through the Ministry of Law is foreseen by the last paragraph of Article 140 of the Constitution, when the National Assembly does not approve, amend or withhold the decision within 30 days. project classified as urgent in economic matters, the President of the Republic will declare it a decree-law and order its publication in the Official Register.

The Commission for Economic Development postponed the vote on the report for the first debate on the bill on increasing VAT to 15 percent

The government bloc hopes not to use plan B to approve the emergency project, warned ADN lawmaker Inés Alarcón. who pointed out that due to the lack of votes and that is the case, the urgent project would have to come through the Ministry of Law “because we need to win this war, the Ecuadorians, we must all get involved so that we can come to light and we can finance this war against terrorism”.

Alarcón insisted that the only way to finance the war against organized crime is to increase the VAT, and the President of the Republic Daniel Noboa himself indicated that this would be a temporary measure, and he also refreshed the memory of some political sectors that This measure has already been taken before.

He said that the country is facing an enemy that is superior in weapons and an infinite economic infrastructure, therefore “we have to finance that war, and the only way to do that is by increasing the VAT”.

President of the Civil Revolution (RC), Viviana Veloz, He stated that he will continue to make sure that he does not want to act differently from what is regulated by the Constitution and the law, regarding the time the Parliament has to process an urgent project, and “we will be vigilant so that there is no attempt to pass the project through the Ministry of Law, because it is evident that the government does not have the votes to approve this project at this moment,” he pointed out.

He said that the head of the ADN bloc, Valentina Centeno, knew from the beginning that the Civil Revolution would never cast its 51 votes to increase taxes or to privatize strategic sectors or sectors such as health, education and social security.

“There is a risk that it will enter through the Ministry of Law because the report does not have votes either in the commission or for adoption at the plenary session of the Assembly, which is why we are monitoring that this does not happen,” insisted Veloz.

For the Republic of Croatia, he added, it is time to touch the untouchables and it is time to shift the burden of the state crisis to those who have the most income; that the state must be strong with the strong, not with the weak; That is why he said that they confirm that the position of the Citizen Revolution bloc is to vote against the VAT increase from 12 to 15%, even if it intends to increase it permanently by one percentage point or temporarily by two percentage points. .

“Our position confirms that we will not cast our votes to hit the middle class and those who have the least,” said the lawmaker representing Santo Domingo de los Tsáchilas, who said that through the RC delegate, before the Economic Development Committee, Blasco Luna, presented a minority report with four alternatives: the first is that there is an increase in foreign exchange exit tax (ISD), from 3.5 to 6%; that a special contribution is charged to the bank with a percentage split between 25, 30 and 35%; third, to reform the law on the internal tax regime so as to establish a fixed tax of 3% for 500 large capital cities in the country; and, finally, to create a single special contribution for large fortunes exceeding $1,000,000. That all these measures would collect more than 2.8 billion dollars.

Veloz invited President Daniel Nobo, so that you understand that an increase in VAT of three percentage points is counterproductive and will cause economic contraction and that you understand that in times of crisis state intervention is imperative, but also that you can have anti-cyclical policies so that there is economic liquidity.

The Croatian legislator asserted that Correismo’s decision from 2016 to increase VAT by two points after the earthquake cannot be compared, because there was an economic scenario of growth, while in 2024 the economy stagnated and indicators of poverty and extreme poverty increased. .

“What is actually hidden behind this urgent economic law is the respect of the agreement with the International Monetary Fund that the Government has, and in response to that we said that those who have the least cannot be touched,” he pointed out.

Legislator of the Construye movement, Jorge Peñafiel, He stated that there is reluctance in the National Assembly to increase taxes, and what is surprising is that the Government does not reach an agreement with its own allies in the PSC and the Republic of Croatia.

Furthermore, he warned that the Commission for Economic Development, which analyzes the project, intends to incorporate new taxes into this project, committing an unconstitutional act, because the initiative on the tax and fiscal law rests exclusively with the President of the Republic, and therefore it would not be possible because the commission includes issues increases in other types of taxes.

What the table can do is to resolve the issue of VAT, which is an initial proposal, but it cannot include any other issue under the threat of unconstitutionality that could be revealed in the plenary session and would become an additional obstacle.

What does not fit this executive proposal, Peñafiel added, is that the war is intended to be used to finance the deficit or to finance re-election.

He said that the Ministry is a real chance for this urgent project that has no support, but that in the long run those who will move the balance are the allies themselves and that they will be responsible for the realization of this scenario. .

The Christian Socialist, Otto Vera, ratified that every tax is regressive, except that products from the basic family basket are not taxed; But in general, the economy will be depressed with any tax, whether on banks or high-profit companies.

Economic recession implies less work and many companies will certainly close, and if this measure is temporary, many will leave the country until the situation normalizes, warned Vera, adding that although this is not defense, but banking taxation, it will cause a domino effect. effect on those looking for credit, because rates will rise and there will be less liquidity.

He indicated that the state, if it needs funds, should negotiate with the telephone companies, whose issue is ongoing, and insisted on the application of a unique, special and exceptional contribution for individuals or private companies that had a higher level of profit, because if someone earned little, it cannot be recorded.

The PSC vote will be with the urgent project as long as it does not touch the pockets of Ecuadorians, and he stated that if the proposal of the executive power passes through the Ministry of Law, it will be quite complicated, although there are those possibilities, but we must work on alternatives and believe that agree to achieve.

Mariana Yumbay from the Pachakutik movement He expressed regret that the Government is thinking about using the strategy of the Ministry of Law and not allowing the plenary session of the National Assembly to declare the proposal to increase the VAT.

The lawmaker said he hopes the government and its allies will act in a coherent and responsible manner, but that Pachakutik will ensure that this does not happen, as this urgent project threatens the pockets of Ecuadorians. “If they were to act like that, what would be evident is that they wanted to coerce and force the law that is against the majority of citizens to come into force,” he pointed out.