Taxes in Bank Profits Could Spell Trouble to Many Sectors

Francisco Alarcon

Francisco Alarcon, alternate representative of the Chamber of Industries of Guayaquil, said that if the the Organic Draft Law for the Redistribution of the Social Expenses is approved, it would reduce the banking capacities to grant loans, and it could also affect other sectors.

Alarcon said that “in the tenth tributary reform, the Government already had offered not to introduce new taxes. This is the beginning of a change of rules, which affects investments. Then, don’t wonder, afterwards, why investment doesn’t  flow in this country. The answer lies in the constant change of rules,” he said, and his statement was supported by Pablo Davila, executive president of the Chamber of Industries of Quito.

Davila added, “We are creating a bad precedent. Today we are discussing about the profits of the financial sector, but tomorrow we could be talking about the profits of any industrial sector. This is not the way to focus the human development bonus proposal or any other economic support of the State.”

The statements of Alarcon have aroused expectations in the political sphere, however the subject must be treated delicately because it affects the principles of free contract, in case of its violation it would mean a salary reduction for the presidents of the banks. AV