Economic bill includes agricultural incentive

Ecuadornews:

The report for the second debate of the proposed Law for Productive Development welcomed the requests of the agricultural sector and the Popular and Solidarity Economy.

With 40% of changes the Economic Development Commission approved the report for the second debate of the urgent economic project for Productive Development.

Among the main modifications is the inclusion of the debtors of the National Development Bank in liquidation among the beneficiaries of the remission of interest, fines and surcharges proposed by the original bill.

If the law is approved, the measure will be applied to those who have obligations of up to $ 50,000, educational credits and some commitments with the Superintendence of Companies. A 10-year lock was also incorporated for those who accept the proposed referral and “does not become a bad practice,” a statement from the National Assembly says.

As a result of the observations heard in the first debate of the project, the legislators included the agricultural sector in the exemptions of the Value Added Tax (VAT). Acquisitions of capital goods, machinery spare parts, supplies and leases of land will be exempt from this tax and an agricultural insurance will be created.

The representatives of the Popular and Solidarity Economy also requested more attention in these economic measures. In this sense, a guarantee fund will be established with up to 50% of the profits of the public bank for the promotion of the sector.

In addition, reforms to the Public Procurement Law are proposed so that state entities that hire Popular and Solidarity Economy services pay an advance so that the associations can reinvest. The second debate in the plenary is scheduled for June 19. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/ley-economica-incentivo-agricola-ecuador