The Law of Goodwill is on the way to repeal

Ecuadornews:

The Assembly will discuss on Tuesday the first report to eliminate this regulation. That asked 63.10% of Ecuadorians in the popular consultation.

Builders and unemployed workers will begin to breathe this Tuesday. The plenary session of the Assembly will analyze tomorrow the report for the first debate of the derogatory bill to avoid speculation on the value of land and taxation or called the Goodwill Law.

This is the result of the referendum on February 4. There, 63.10% of Ecuadorians voted in favor of eliminating the Goodwill Law.

The report was prepared by Occasional Commission for the application of the popular consultation in six sessions, one of them in Portoviejo, province of Manabí.

According to the document, the regulations approved in 2016 generated a debate and affected the real estate market and the construction sector.

The commission received the Association of Real Estate Developers of Ecuador. They said that the Goodwill Law in the last two years has decreased in the Gross Domestic Product in “at least 1,500 million dollars”. In addition, explained the association, that this regulation left 115,000 people without employment and that caused the closure of construction companies.

According to them, the construction sector registers a housing deficit of 110,000.

The law did not control land speculation, but stopped the sector and generated distrust to invest. Therefore, said the association, there are paralyzed real estate projects.

The publication of Quarterly National Accounts of the Central Bank coincides with real estate: the housing construction industry registered a decrease of -1.7% in the second quarter of 2017; and of -7.9% compared to the second half of 2016.

The report confirms that the decrease in the sector affects the supply of labor and ends up increasing the unemployment rate in the country.

However, Vicente Taiano , of the Social Christian-Wood Party of Guerrero (PSC-MG), member of the Occasional Commission, warned that with the validity of the Law of Goodwill the sixth section of the Organic Code of the Territorial Organization was not repealed, Autonomy and Decentralization ( Cootad ). This includes articles 556 to 561 of the taxes on profits and goodwill that are still in effect, says the report. (I)

Source: https://www.eltelegrafo.com.ec/noticias/politica/3/la-ley-de-la-plusvalia-va-camino-a-la-derogatoria