CAL will decide on tax law and budget proforma this Tuesday afternoon

This Tuesday the Legislative Administration Council (CAL) will decide whether the tax reform project, named the Law for Economic Development and Fiscal Sustainability after the COVID-19 pandemic by the Executive, qualifies or not to be dealt with in the Assembly. If they qualify, they will also decide in which commission the treatment of the project will be carried out, which was sent as an urgent economic matter. Likewise, you will know the budget proforma that must be dealt with in 30 days.

Indeed, this afternoon the CAL convened said meeting, which will be held in a virtual starting at 2:20 pm.

The session will have several points to be discussed and in the first instance it will know and resolve the issue of the Pro-forma budget 2022 and the four-year budget programming 2022-2025, which was handed over to the Assembly on Saturday night. This should be assigned to a specialized commission on the subject.

The second point will be the subject of the tax law with which the Government seeks to collect about $ 1.8 billion in two years. Among the main points of the law, special contributions are established for companies with assets of more than five million dollars and for individuals and conjugal partnerships that have assets of one million and two million dollars, respectively.

Likewise, the rules of the game for the payment of income tax for natural persons are changed, people who have income of $ 2,007 onwards will have to pay a higher tax. This rise is becoming stronger, as revenues are higher, so it has been indicated by the Government and analysts that it is a progressive reform (whoever earns the most, pays the most).

The tax law was one of the three components of the Opportunity Creation Law that was not qualified by the CAL, arguing that said law contained several matters and not just one as established in the law. For this reason, the Government agreed to divide the law into three different ones (tax, labor and investments), which will be dealt with consecutively as soon as possible.

As to the 2021 proforma, the Assembly did not approve it, arguing that the Government had failed to meet the deadlines for submitting a response to the Legislative’s objections.

Both the proforma and the tax law they must go to specialized commissions on the economic issue. In the Assembly there are two entities that meet these requirements: the Economic Regime Commission and the Economic Development Commission. The first chaired by Mireya Pazmiño, from Pachakutik, and the second by Daniel Noboa Azín, from the United Ecuadorian Movement.

The CAL has also scheduled other topics for this Tuesday. This way you will know and resolve about the draft Organic Law of Incentives to Agriculture, Livestock and Craftsmen, proposed by Assembly members Henry Kronfle and Javier Eduardo Ortiz, both Social Christians.

As a fourth point, it will be resolved on the project of Organic Law Reformation to the Labor Code and the Organic Law of the Public Service regarding salary equity for the right to earn the same and the ineffective dismissal, proposed by Assemblywoman Marcela Holguín (UNES).

He will also know and resolve on the pdraft of the Organic Law Reforming the Organic Code of the Environment that guarantees the rights of the urban fauna to live well. The proponents are Assembly members Viviana Veloz Ramírez (UNES), Fausto Jarrín Terán (Centro Democrático) and Blasco Luna Arévalo (UNES).

The next item on the agenda has to do with knowing and solving the draft Organic Law and Various Laws regarding environmental education and interrelated violence, tAlso proposed by Assemblywoman Holguín; They will also analyze the pDraft Reform Law to the Organic Code of Territorial Organization, Autonomy and Decentralization, initiative of Jéssica Carolina Castillo (Pachakutik).

As the eighth point, the reform bill to the Companies Law proposed by Darwin Pereira Chamba, from Pachakutik.