95% of the natural and legal persons who came to present their observations to the urgent bill of Economic Development and Fiscal Sustainability do not agree with the reform proposed by the Executive, and several changes will have to be made in the proposal that began preparing the report.
It was revealed by the legislator César Rohón (before PSC), who anticipated that the National Assembly has to find the balance to guarantee equity, tax justice and progressiveness; therefore, there are a series of factors that have not been taken into account, since it is a tax law and not the balance of a balance sheet, to establish income and expenses. “Here you do not have to force the figures,” he refuted.
Since November 11, the commission began to prepare the report for the first debate and the document is expected to be ready by the weekend. All the political sectors represented in the commission speak that changes will be recommended to the initial proposal of the Government.
Economic Development Board closes socialization of the urgent project and begins to prepare the report for the first debate
Assemblyman César Rohón indicated that although the Government needs permanent income and permanent taxes, the right of people to deduct their personal expenses cannot be taken away, in a country where there are no efficient services in health, education and security, where families they opt for those services and look for the bill to deduct them.
The moment that right is removed or deductions are reduced to $ 5,000 a year, it is simply pushed to informality, because many will no longer ask for the bills. And, on the other hand, an acquired right is affected.
The representative of the ruling party, Francisco Jiménez, showed openness to make changes in the tax reform, but said that any definition that is reached must have two pillars perfectly fulfilled: the first, that the tax reform is a tool for economic reactivation with rules predictable, stable and also an amount of income that allows this reactivation. And the other pillar is that it is a tool for fiscal sustainability.
Regarding the deductions of personal expenses, Jiménez admitted that there are divided criteria in the commission, because there are those who argue that the range should be higher than $ 5,000 as proposed by the Executive. In everything it is possible to give in, affirmed the CREO legislator, but the assignment must be with common sense and prioritizing the interests of the country.
A technical table made up of economic representatives from the Government, the productive sectors, academia and civil society accompanies the legislative commission in the drafting of the report for the first debate, where the observations made by more than 70 people and institutions that appeared will practically be included. .
Fiscal pact
Felipe Ribadeneira, representative of the Ecuadorian Business Committee, insisted on the approach of the fiscal pact, as he argued that as entrepreneurs they have to take great care of the liquidity of the companies. That they are aware of the problem that exists in Ecuador, that they are not opposed to taxation, but that the construction of a regulation has to find a balance between fiscal necessity and the need for productive reactivation.
For this sector, he added, it is not clear to him why the collection is so high of $ 1,900 million, in two years, when the commitment with the International Monetary Fund is that in the year 2022 there must be a collection of $ 600 million and in the year 2023 of $ 500 million; So why is there talk of a higher amount of collection at times when there must be balance, asked Ribadeneira.
This fiscal pact, explained the businessman, determines that the contribution made by companies must have a joint responsibility on the part of the State in reducing spending, controlling corruption and avoiding deficiencies in public purchases.
From the academy, Santiago García, president of the Pichincha College of Economists, pointed out that the country needs a good post-pandemic tax reform, and stressed that the legislative commission is open to making changes to the Executive’s proposal, since it is not about punishing the middle class or punish the corporate sector.
That it is fair to pay taxes, but the professional class does not want the whole adjustment to fall on their shoulders, but it is also true that they are paying less than they should.
The balance is that professionals can make their deductibles and pay taxes, but not in excess; That the business sector pay its patrimonial contributions, but giving it the necessary payment facilities, taking into account that in March and April 2022 three tax payments are accumulated.
Juan Francisco Jaramillo, from civil society, stated that the need to collect that the State has cannot be above the interests of the citizens, since it is important to take into account that it is emerging from a pandemic that hit the majority of Ecuadorians and cannot be affected economically beyond their contributory capacity.
Civil society, he added, asks the National Assembly to seriously analyze this reform, especially in aspects related to the deduction of expenses for natural persons and that the deadlines for special contributions be reformed. (I)
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