The Ministry of Economy reported that next week it will make new disbursements, in compliance with the law and the decision of the Constitutional Court
The Ministry of Economy and Finance announced that it has delivered $ 30 million for VAT refunds to Decentralized Autonomous Governments (GAD). This, in compliance with the term established in the reforming law of the Organic Law of Internal Tax Regime and the resolution issued by the Constitutional Court, regarding the refund of VAT.
The $ 30 million correspond to the resolutions issued by the Internal Revenue Service until July 30, 2021, and which have been communicated to this Secretary of State. The Government must pay until the end of December or the first days of January a total of $ 147 million to Municipalities, but with these first payments, the debt is being covered. Additionally, there is a pending VAT debt of $ 87.9 million for the prefectures, but which would be in a negotiation process.
Then, the amounts transferred to date correspond to the following distribution:
• $ 7.4 million to 451 rural parish GADs
• $ 22.5 million to 140 small municipal GADs.
“The programming of these payments has been structured under the principles of equity and transparency and considering the size of the sectional governments, prioritizing those who have less financial autonomy ”, said the Ministry.
It is planned to move forward this week with the refund of VAT to 38 medium-sized municipalities and for this purpose $ 17.3 million will be allocated. Subsequently, it will be met with the rest of the municipalities and prefectures.
About the topic, Franklin Galarza, president of AME, thanked the Government for the openness it has had to comply with payments in a timely manner.
Since August 2021, the GADs have already directly withheld that VAT, so debts of this type would not be repeated.
President Guillermo Lasso ratified, through the Ministry of Economy and Finance, his commitment to comply, in a timely and transparent manner, with the payment of these obligations that are mostly inherited from the previous management.
The Ministry also confirmed that the payments of this entity are automatic and programmed without officials or intermediaries being able to intervene.
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