LatinNews Daily - 30 November 2022 |
ECUADOR: Legislature votes to repeal tax reform |
On 29 November, Ecuador’s opposition-controlled national assembly voted to repeal the tax reform that was introduced by President Guillermo Lasso’s government in November 2021. Analysis: The vote to repeal the tax reform is for now largely symbolic – President Lasso has the power to veto the opposition’s bill, meaning that his economic programme would be safe for at least a year. However, the vote demonstrated the near-total unravelling of Lasso’s alliance in the national assembly; he has totally lost the support of the indigenous Pachakutik, which offered the key to steering his economic reforms through the legislature. Faced with the prospect of legislative gridlock for the remainder of his four-year term, Lasso is instead preparing to secure constitutional reforms via an eight-question referendum. Yesterday, he issued a decree confirming the calling of this referendum, which must now be organised by the national electoral council (CNE).
Looking Ahead: Lasso is expected to veto the bill, but the tax reform is still at risk in the long run. Under Ecuador’s constitution, the national assembly must wait a year to reconsider a bill following a presidential veto. However, the veto can then be overturned with the support of two-thirds of legislators. |