The elimination of the wealth tax would be the only tax to be reviewed within the process of the urgent economic project for the attraction of investments, whose report for the first debate is prepared by the Economic Development Commission of the National Assembly.
The president of the table, Daniel Noboa (EU), ruled out, like legislators Wilma Andrade (ID), Francisco Jiménez (CREO) and César Rohón (former PSC), that through this urgent project the tax reform can be repealed contemplated in the Law of Economic Development and Fiscal Sustainability, which entered into force as a decree-law last November.
Guillermo Avellán explains the advantages of the Monetary Board determining interest rates and regulating liquidity funds, according to the Investment project
The Economic Development Commission expects to present the first debate report on the urgent economic bill before Wednesday, so that the plenary session of Parliament can process it in the first debate this week, taking into account that the 30-day period for the process in two debates expires on March 24.
As part of the processing of this urgent project, Assemblywoman Johanna Moreira (ID), on March 1, presented as an observation the inclusion of a second repealing provision: “Repeal the Organic Decree-Law for Economic Development and Fiscal Sustainability after the Covid-19 Pandemic. 19, published in the Official Registry Third Supplement No. 587 of November 29, 2021, in accordance with the provisions of the last paragraph of article 140 of the Constitution of the Republic of Ecuador.”
Legislator Noboa stated that it is possible to apply specific reforms to the tax reform, such as the revision of the wealth tax, considering that the motivation for applying this tariff was that there was no liquidity in the State, and that now with an oil price above of $120 a barrel, there would be no reason to maintain that tax.
Why remove liquidity from entrepreneurs or farmers, since what they have is high net worth and not necessarily liquidity, asked Noboa Azin, who argued that in this way the wealth tax is eliminated and with it, investment is encouraged.
The representative of the province of San Elena for the United Ecuadorian Movement said that the repeal of the entire tax reform, as proposed by legislator Johanna Moreira, is quite complicated.
Legislator César Rohón (former PSC), ruled out that the tax reform can be repealed and argued that the approach formulated by the assembly member, Johann Moreira, is out of law. That position is also shared by legislator Wilma Andrade (ID). The repeal of this law, in force since November of last year, has a specific procedure, they noted.
“It is not possible via an article to propose a repeal of an entire law, that is inadmissible, illegal and unconstitutional, since the procedure is regulated in the Constitution and in the Law of the Legislative Function”, Andrade affirmed, after pointing out that the only thing that What can be done is to modify punctual or specific topics.
Andrade agreed with legislator Noboa, that a revision of the wealth tax could be carried out once the State today receives an oil income greater than that budgeted.
The CREO delegate before the Development table, Francisco Jiménez, said that the repeal of the tax reform is a judged issue that was defined by the Legislative Administration Council to be consulted to the Constitutional Court, and intend to introduce this kind of “horse of Troy”, in this new investment project it can ruin all the efforts that are sought to implement an extraordinary regulation. A punctual reform to the tax law would have to be reviewed, he noted.
Public-private partnerships
Regarding the approach formulated in the urgent project on public-private partnerships, Assemblyman Daniel Noboa clarified that they are not a privatization, but a contract between a private party and a public party that is the owner of the property, the private party is the operator or dealer for a specified period of time.
He regretted that a sector of society is manipulating the concept, since it tries to maintain that it is trying to privatize the assets of all Ecuadorians. He said that it is also not being discussed that the right to health has to be charged to the user.
Legislator César Rohón commented that at the moment the legal terms regarding the delegation are being adjusted.
Also the legislator, Wilma Andrade said that in the law under discussion it will be made clear that the delegation that can be made for infrastructure issues in education and health, will be exclusively for that purpose, not the service, where the private party will not be able to charge any cost. to user. (I)
Source: Eluniverso
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