Ecuador: Lasso vetoes a law that sought to repeal his tax reform

The President of Ecuador Guillermo Lasso has vetoed this Tuesday a law that sought to repeal his tax reform, in force since November 29, 2021, after the approval of the measure by the National Assembly last month.

The Ecuadorian Head of State has explained that this decision is taken because the project is “unconstitutional and inconvenient,” so it will go to the Constitutional Court (CC) which, in 30 days, must rule in favor or not of the Executive’s reading, according to has reported “El Telégrafo.”

In the event that the Constitutional Court rules in favor of the Government’s opinion on the repeal of the Organic Law for Economic Development and Fiscal Sustainability after the COVID-19 Pandemic, it cannot be dealt with by Parliament for at least one year.

After this time and to try to articulate any type of reform again, the Assembly will need the favorable vote of 92 of the total of 137 assembly members.

The Government justifies the objection due to unconstitutionality, pointing out that the repeal project was not presented by the Executive and argues, in accordance with article 135 of the Constitution, that “only the President of the Republic can present bills that create, modify or abolish taxes, increase public spending or modify the political-administrative division of the country.”

“Given the irresponsible action of the legislature and in response to the constitutional responsibility that the Executive Branch exercises over the Public Administration, it is up to the co-legislator to act responsibly and fully object to this bill,” Lasso said in a statement collected by the aforementioned newspaper.

With information from La Gaceta de la Ibertosfera

For the full picture, see our Brazil Tax Reform: Complete Guide.

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