53 votes in the Assembly of Ecuador Filed the Tax Reform

Ecuadorian Lawmakers celebrate the resolution taken to file the tax reform

Each political sector of Ecuador had its own party, yesterday. The opposition parties joined 53 votes out of 101 present in the plenary assembly. And so with a simple majority, they approved the resolution to deny (file) the tax reform bill.

Ruling party, Alianza PAIS (AP), also applauded the vote and there was no sense of defeat. According to the lawmakers, the resolution is illegal and, conversely, it contributes to move the project by the ministry of law.

By the difference of views, the situation of the Tax Reform is in doubt. Nothing is clear. The executive sent it to the Assembly on 24 October, as an “economic emergency” project. Thus, there were 30 days for delivery.

An ordinary procedure gives a period of six months to treat first and second debates.

‘Reform is in force’

President Correa said yesterday in Santo Domingo, that if the Assembly does not send its observations on the law until November 24 taxes will take effect immediately. The reform continues and the resolution adopted at the initiative of the opposition has no legal validity. It’s just a “petition”.

“It’s just an urge. The Organic Act states that for the Legislative Branch to file a bill it is required an absolute majority of votes, ie 63 votes.” And (the opposition) have not achieved the 63, he said.

The “Filed” Taxes

The tax package, which is the fifth launched by President Rafael Correa in his four years in office, raised the tax to raise capital outflows from 2% to 5% and taxes on cigarettes and alcoholic beverages.

In addition, he created other taxes with which the government aims to promote environmental care, as a tax on vehicle pollution and the use of plastic bottles.

The tax reform would yield between 400 and 450 million dollars to the treasury, which would be earmarked for social sectors, especially health. (LO)