If the economy maintains the growth rate of 2021, it is analyzed to give compensation to those who must pay more income tax.
During his weekly radio program ‘Let’s meet for citizenship’, the President of the Republic, William Lassoassured that a compensation for taxpayers who have felt the weight of tax reform.
That compensationhowever, it will happen as long as the economy grows at least as much as in 2021 and if other economic indicators are positive.
“If we see that the economy is reactivated, if economic growth is similar, at least, to that of 2021, well, we are not fools, we are not acting in bad faith, we are acting in good faith. If the circumstances arise, do not doubt that my Government will make decisions to favor those who feel a great sacrifice and who are contributing to the stability of the Ecuadorian economy, who are contributing so that the Government can count on resources for the emergencies,” he said.
The President defended his tax reform and assured that it does not affect the majority of the population. However, he acknowledged that increases in payment Income taxwhich average 255%have an impact on the consumption capacity of an important segment in the demand within the domestic market.
Negotiations with China will be public
lasso He assured that the signing of agreements and contracts with confidentiality clauses that leave everything out of the public eye will not be repeated. He criticized the confidential management that was given, in previous governments, to the contracts of debt tied to the sale of oil.
In that sense, he rejected that this had been the common practice in previous governments and indicated that he will deliver to the Attorney General of the State and the Prosecutor “all documentation called confidential” of the contracts of debt currently seeking to renegotiate with China.
The Attorney General, he indicated, will be given the information to evaluate the possibility of initiating legal actions abroad or to participate in trials that have already been initiated and in which Ecuador also appears as a victim. In the case of the Prosecutor’s Office, the documentation delivered, if applicable, will allow legal action to be initiated in the country.
The ultimate goal is for Ecuador to manage its oil sovereignly without being conditioned by contracts that have been harmful.
lasso He pointed out that there is no problem selling oil to China; but as long as it is ensured that there are no deals involved and a large part of the money does not go to the hands of intermediaries.
The President explained that this was one of the two points that were addressed on his trip to China days ago. On the subject of the debt with the Asian nation, he explained that it is approximately $4,600 million; Of those, $2.5 billion are credits to the Chinese Eximbank and the Bank of China and, aside, there is $2.1 billion with the China Development Bank (CDB). In the latter, he said, is where the problem exists since it is a balance tied to calls oil presales.
lasso He stated that the country pays freight (ship fees) to send the oil to China, but that it actually ends up being transported and sold to nearby countries, such as Peru. “There is a good receptivity, but everything goes through a negotiation process that takes time,” he pointed out. (JS)
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