On Monday, May 4, Ecuador's National Assembly will hold the first debate of the draft Humanitarian Support Law, which proposes exceptional contributions in light of the current situation generated by the health crisis, as well as a 5% tax for companies that recorded profits above $ 1 million in 2019.
The Ecuadorian Federation of Exporters (Fedexpor), which brings together the country's main exporting companies, announced in a statement issued on May 1 its total disagreement with this initiative. The entity stated that this sector already had to pay 70 million dollars because of the Tax Simplification and Progressivity Law and that paying another contribution would not allow them to have the liquidity to sustain employment.
Richard Salazar, the executive director of the Banana Marketing and Export Association (Acorbanec), stated that the sector needs liquidity and incentives and not more taxes to be able to continue generating jobs and foreign exchange to sustain dollarization.
During the first debate in plenary, legislator Edy Peñafiel, from Pachakutik, proposed a unique contribution on the assets of natural and legal companies with a contribution of 1% for those with profits between 1 million and 10 million of dollars; and 3% for those with profits of more than 100 million.
The observations made in the first debate will be collected and used by the Economic Development Commission, which is in charge of this issue, to present a report of the issue to the Plenary in the second and final debate.