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November 27, 2021
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Government does not obtain necessary votes for tax reform

Government does not obtain necessary votes for tax reform

The correístas banks, Pachakutik and Izquierda DThey closed the door to the initiative of the Guillermo Lasso administration.

One day after the 30-day deadline for processing the urgent economic bill (tax reform), the votes of the assemblymen rejected and archived the tax reform of the Government of Guillermo Lasso

At the beginning of the session on November 26, 2021, Francisco Jiménez, assembly member of CREO, presented the motion to approve the report majority of the Economic Development Commission.

That report had included changes pushed by the government so that its original proposal would get more support. Jiménez assured that the process had not been easy.

“A reform in tax matters it never is, but decisions were necessary to balance the fiscal accounts. We have 7,000 million of fiscal deficit and more than 60% of indebtedness on the Gross Domestic Product (GDP), “he said.

With the temporary contributions on the patrimony and the changes in the payment of the income tax for the natural persons, the Government expected to have $ 1.9 billion of income extra in the next two years. Starting in 2023, the permanent collection will be just over $ 700 million.

The approval of the tax reform it was one of the conditions included in the agreement with the International Monetary Fund (IMF).

However, only 30 legislators gave their support, 88 voted no and 19 abstained.

With this result, the Social Christian Assemblyman Esteban Torres moved to vote on the minority report promoted by Correismo and a part of the Pachakutik bench.

On this occasion, 90 wills signed that motion. At the moment, it is being defined if the legislators approve the alternative proposal to the project of the Guillermo Lasso government.

If there is no support for that alternative proposal, the last step is to vote on the final file of the tax reform. (JS)

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