Guillermo Lasso assured that on his first day as President of Ecuador he will send Congress a tax cut bill

After winning the second round of elections last Sunday, Guillermo Lasso assured that his government will bring “real change” to Ecuador, after a left-wing era in power marked by the figure of former President Rafael Correa, sentenced to eight years in prison for corruption. According to the advance of the former banker, 65, The main changes his administration will promote will relate to the economic sector and will include tax cuts and incentives.

During an interview with the channel CNN, the elected president announced that on the first day of his government – on May 24 -, will present to Congress a tax reform aimed at boosting the country’s economy.

“The reform will not aim to increase taxes. Completely the opposite. There is a tax on the sales of microentrepreneurs that we must eliminate because there cannot be a tax on income, but on sales “Lasso commented.

In this direction, the brand new head of state will seek to abolish the 2% tax on sales of micro-enterprises He also announced that phase out the currency outflow tax, during the four years of his mandate.

Intending to reactivate the tourism sector, movement leader Creando Oportunidades (Creo) said that increase the possibility of VAT being lowered during four public holidays of the year.

“We do not plan to create a tax or increase the current rates”said Lasso, who also made it clear that he will fight tax evasion: “Don’t tell me you’re a 10 or 20-year-old businessman and you never make money and don’t pay money. taxes. “

During the campaign, the president-elect of Ecuador had already promised tax incentives, 1% interest credits and a gradual adjustment of the minimum wage up to $ 500. He also said he would seek to create two million jobs and build 200,000 rural houses.

Lasso further promised that he would propose new joint-venture contracts with private companies in the oil sector to boost oil production and that it will respect the contracts in progress.

Lasso, a conservative who also praises free trade During the campaign, he stressed the importance for Ecuador “to be part of the Pacific Alliance, as urgently as possible”.

The new president will face an economy hit hard by the pandemic, but with long-standing problems, such as lack of liquidity and debt that grew further during the health crisis caused by the coronavirus. For this he argued that he will seek “from day one a free trade agreement with the United States.”

Last year Ecuador recorded a 7.8% drop in its GDP. In addition, it carries a public debt of more than 63,000 million dollars, which represents 63% of the gross domestic product (GDP). At the end of 2020, the country obtained a loan from the International Monetary Fund (IMF) for 6.5 billion dollars.

“A new stage begins for Ecuador, where we can all live better. Democracy, freedom and Ecuadorian families won, ”Lasso wrote on his Twitter account on Monday, a day after defeating Andres Arauz, The political dolphin of Correa, in the presidential elections.

Markets hailed Lasso’s victory after months of concern that Arauz’s plans for heavy social spending would disrupt delicate public finances. Ecuadorian bonds rallied on Monday as their papers due in 2035 hit their highest level since September, traders said.

The elected president will take the reins of a country in crisis on May 24. He will succeed Lenín Moreno, who broke with Correa when he came to power four years ago.

With the support of the United Nations, the Moreno government is moving forward in the transition of power, a process that will focus on solving health and economic problems to save the country from its crisis.

“No economic issue is more important than the vaccination process and the fight against covid,” he said in an interview with the agency. EFE the Minister of Labor and responsible for the transition, Andres Isch, noting that vaccination is closely linked to the economy, in particular due to the urgent need to reactivate productive sectors and restore social protection networks.

With information from CNN and agencies

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