In this second debate, the government needs at least 70 votes to approve the urgent project that seeks a collection of $ 1.9 billion in two years
The business productive sector through Felipe Ribadeneira issued an alert on the content of the urgent project of Economic Development and Fiscal Sustainability that this November 24 enters the second and final debate in the plenary session of the National Assembly.
This productive sector, explained the union leader, is concerned that the second debate report does not include the work carried out by the technical table that made up the Economic Development Commission with representatives of the government, business sector, academia, legislators and citizens.
It was a four-day job in a row and the commission omitted it from the report after a communication from the Minister of Finance, Simón Cueva, in which he mentioned that everything that the technical commission discussed cost the country in reducing revenue by $ 250 million. Therefore, it must be denied. The one who made the proposal not to collect what was developed in the commission was the official legislator, Francisco Jiménez, and all that work was ruined and that is unfortunate, said the leader.
Ribadeneira, president of the Ecuadorian Business Committee, insisted on the proposal of this sector of a fiscal pact in the sense that increasing taxes at this time is not an adequate measure; However, as the Law is being dealt with, it must aim at a balance between the maintenance of public finances and the reactivation of production.
The approach of the Business Committee is that on the subject of temporary contributions a credit note redeemable for about five years is established so that somehow the State has enough time to solve the problems under parameters of joint responsibility so that the resources collected do not go to deaf ears, but to a commitment of return. This credit note will prevent a strong attack on companies and threaten their permanence in the market, as companies go bankrupt due to lack of liquidity.
He regretted that the policy has annulled the work carried out by a technical commission on issues such as VAT, ICE and even putting exemptions in the patrimonial tax in favor of the elderly; that is, people who stopped having an economic activity.
At the table, it was also raised about the percentage of deductible expenses, which practically with this tax reform are eliminated since they are currently located at $ 14,700, said Ribadeneira, since it is not correct what is said that this deductible rises from $ 5,000 to $ 10,000, well what you do is hurt even more, because now you have to first reach $ 10,000 of deductible expenses in order to have the tax credit. What this elimination will do is contribute to informality.
The National Assembly is summoned for this Wednesday, November 24 at 11:40 to know and process the report of the second debate of the urgent project sent by the Executive that establishes new special contributions for those who earn more than $ 2,500 per month per month, and those who have an equity greater than $ 1 million, which is 2.5% of taxpayers.
Government seeks 70 votes to approve the urgent project of Development and Fiscal Sustainability
However, Nathalie Arias (CREO), left open the possibility that the base of the contribution of the people will be increased “a little more”, but said that those who earn less than $ 2,500 per month should not worry in the country about an affectation of the Income tax. He indicated that this project will not affect legal security but rather promote it to attract investment.
The bill focuses on four axes: A unique special contribution on large estates and certain companies to boost the national economy after the COVID-19 pandemic; the restructuring of certain taxes, to improve the sustainability of public finances; a temporary regime applicable to undeclared assets abroad, a transaction mechanism and alternative solutions for tax disputes; and, the need for reforms in various legal bodies.
The legislative blocks intensify the meetings to define a position against the Executive’s proposal. As planned this November 24, an extensive debate will be opened and the vote would be scheduled for Friday, November 26, one day before the deadline to approve the project and there is even talk that if there are not 70 votes the government will try to add them until Saturday, otherwise the initial proposal will come into effect by the Ministry of Law. (I)
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