The Assembly did not reach the votes to approve or archive the Government’s project. With that, President Lasso will be able to enact the reform by the Ministry of Law.
After a session of more than three hours, the assembly members could not approve or definitively file the tax reform presented by the Government of Guillermo Lasso.
In the first instance, the majority report of the bill was denied. And, in second, the minority report promoted by the correista bloc was not approved either.
Thus, Mireya Pazmiño, assembly member of Pachakutik, moved the rejection and final file of the tax reform presented by the Government of Guillermo Lasso.
This motion received the support of 53 assembly members, 3 votes against and 81 abstentions, among them the votes of the correista bench.
With that vote, all possible options to define the destination of the proposal were exhausted and the Government may promulgate it by the Ministry of Law when the established 30-day period for its processing expires. That deadline is at midnight on Saturday, November 27, 2021.
According to Pazmiño, the motion to archive proceeded because the proposal did not have a democratic treatment and the measures included did not favor the majority of the Ecuadorian people. «It cannot happen under those conditions. I invite you to make a minga to build a law that truly seeks to reactivate the economy, “he said.
With the validity of the project by the Ministry of Law, the Government will be able to collect an additional $ 1,900 million between 2022 and 2023; while there will not be permanent income of a little more than $ 700 million from 2024.
The regulations that will come into effect from January 1, 2022 are those included in the original proposal, that is, the payment of income tax will be from $ 2,000 per month and the temporary contribution will be on a personal patrimony of $ 1,000,000 ($ 2,000,000 in conjugal partnership).
Correista proposal sought more taxes on economic groups
The minority report, promoted by Correismo, obtained 48 in favor, 27 against and 67 abstentions.
Carlos Zambrano, UNES assembly member, who moved that alternative proposal, rejected the little openness of the Government.
“We have given him an alternative to collect more, so that those who evade taxes pay. It is your mistakes that caused the rejection of your initiative. Unfortunately, the requests of the majority of the assembly members were closed and not accepted. This is not a correist proposal, but of the peasants, of the poorest, “he said.
According to Zambrano, the minority report retained 60% of the original text proposed by the Executive, but eliminated the remaining 40%. The main measure was the elimination of temporary contributions on the patrimony and replace them by a tax on the main economic groups. With this tax, around $ 2,373 million would be collected in the next three years and then there would be permanent income of more than $ 1,300 million.
The current income tax payment table was left unchanged and the more than $ 14,000 per year was maintained for deductions of personal expenses.
