Second debate on BDH increase; PK, MPD and PSP are in favor

Today, the second debate on the Draft Law for the Re-distribution of Social Spending, was held.

Today, in the plenary of the National Assembly, the second debate about the so called Draft Law for the Re-distribution of Social Spending, pushed by President Rafael Correa, took place, this bill sets the tax increase to private banks in order to have sufficient resources to increase the Human Development Bond (BDH for its Spanish acronym) from $ 35 to $ 50.

If the law gets approval, financial services (currently exempt) would have a 12% VAT; rises in taxes on the funds held abroad; the Banking Board, a state agency, would have the power to set salaries for senior bankers; an expansion  of the access from the Internal Revenue Service (SRI for its Spanish acronym) to bank information of citizens.

In the debate, several lawmakers gave their views, including:

• Legislator Ramiro Teran (MPD) proposed that bonus recipients should not pay utilities and should not be charged interests on bank loans.
• Assemblyman Luis Almeida (PSP) said “I stand on my position about bankers being without soul” and agreed with the approach, so his party will vote in favor of the project.
• President of CONAIE, Humberto Cholango, along with Assemblywoman of PK, Diana Atamaint, said that after a “technical, economic and political” analysis, have decided to support the project.
• Assemblyman Clever Jimenez (PK) said “the problem is not solved by increasing the bond” and announced that he would not vote in favor.
• Assemblyman Cesar Rodriguez said “in the law there is nothing about a human development bond (…) the only thing available to the poor is $ 15.”

However, most assembly members decided to support the bill due to the coming elections. (MZ)