For this Wednesday at 6:00 p.m. the meeting of the President of the Republic, Guillermo Lasso, with the members of the Democratic Left was postponed.
The national government handed over to the legislative blocks Pachakutik and the Democratic Left a draft of the urgent project in economic matters with some variants to the first proposal for the Law for the Creation of Opportunities, the text of which did not pass in the Legislative Administration Council (CAL).
The two political sectors, with whom the Government has had a legislative alliance since last May, must present their observations immediately before the Executive’s proposal is sent to the National Assembly.
The ruling legislators Juan Fernando Flores and Nathalie Arias announced that the project will enter Parliament this week, where some adjustments are made to the initial proposal that will allow to overcome the first filter in the CAL.
The main objective of this tax proposal is to clean up public finances in favor of the social programs currently being developed by the Government.
Arias commented that it is part of the Executive’s commitments to Pachakutik to send in advance a draft proposal to consider some observations to improve the text, although when it is discussed in the plenary session of the Assembly there will be room for adjustments.
Pachakutik and the ID maintain rapprochement with the Executive on tax reform
Regarding the other blocs, such as the Union for Hope and the Christian Social Party, Arias added, their observations will be received during the debate within the National Assembly.
The bench of the Democratic Left had planned to meet yesterday with the president, but that dialogue was postponed until this Wednesday, October 27 at 6:00 p.m. in Carondelet, regarding the urgent bill on economic matters.
Dalton Bacigalupo (ID) said that his bench will write a tax reform proposal that includes observations mainly on the tax and labor issues. That until noon on October 27, the Democratic Left will polish the Executive’s draft document, where it will be determined that those who have benefited the most in their economic activity are those who can contribute the most in these circumstances of national crisis, he added.
The president of the Economic Regime Commission and legislator of Pachakutik, Mireya Pazmiño, indicated that they will review the Executive’s draft proposal on tax reform, but said that tax contributions should be progressive.
Pachakutik’s interest, Pazmiño said, is that the new proposal does not affect people of the middle and lower classes, that the tax burden should be directed to large businessmen.
According to the Executive’s approach, the temporary contributions for the economic boost and fiscal sustainability post-COVID-19 are intended to cover the economic impact on public finances generated by the pandemic and its direct consequences on public and private employment.
A temporary contribution of 1% is proposed for people who have individual assets equal to or greater than $ 1 million and a contribution of 1.5% to those with assets greater than $ 1.2 million. When there is a conjugal partnership equal to or greater than $ 2 million. This contribution must be made until March 31, 2022 and will not serve as a tax credit.
On the other hand, the temporary contribution on the companies will be for the fiscal year 2022 and 2023, provided that the company has a net worth equal to or greater than $ 5 million, whose rate will be 0.7%.
In this draft project no adjustments are made with respect to the tax on natural persons contemplated in the previous draft Law on the Creation of Opportunities. However, Assemblyman Eitel Zambrano (BAN) indicated that there are changes with reference to the previous proposal, since the tax will be directed to those natural persons whose assets are over a million dollars and for those legal persons who have assets over $ 5 million.
Regarding the dialogues of the Executive with the PSC sector, according to legislator Jorge Abedrabo, they still do not produce. That his bench is in favor of the Executive’s economic proposal passing the CAL filter so that it can be discussed by one of the commissions.
At the moment there are no approaches between the PSC and UNES with the Government, the only sectors that have come to Carondelet are the allies of the regime that make up the National Agreement Bank and Pachakutik. (I)
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