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Repeal of the Goodwill Law passed the first debate

The first debate to repeal the Goodwill Law was developed yesterday in the National Assembly. The elimination of the norm responds to the pronouncement of citizenship (63.10%) in favor of question 6 of the popular consultation on February 4.

Assemblymen of the Citizen Revolution caucus rejected the elimination of the norm. They insisted that this did not affect the construction industry and that it is an effective tool to curb land speculation. Esteban Melo, Juan Cárdenas and Franklin Samaniego argued that the crisis in the construction sector began before the entry into force of the Goodwill Law. Samaniego said that the main problem is the speculation of “certain entrepreneurs who are dedicated to buying real estate and then sell at exorbitant prices.”

Melo said that eliminating the Law affects the government housing plan ‘Casa para Todos’. From the right and the ruling party was applauded the repeal of the law because they considered that its implementation caused the collapse of the construction industry and with it more than 115,000 jobs were lost in the last two years.

Fernando Burbano (AP) mentioned that, according to official statistics, for the validity of the rule investments were lost for around $ 1,500 million. The business began to fall since the previous government announced the legislative project in the second half of 2015, said the parliamentarian. Since then, according to figures from the Central Bank of Ecuador, the sector has experienced 27 months of decrease. Burbano indicated that the situation showed a better scenario when the referendum was made official, which raised the expectations of the buyers. Luis Fernando Torres (PSC) pointed out that the Goodwill Law did not meet its objective and damaged the citizens with an excessive 75% tax on the extraordinary profit (El Telégrafo).We will be glad to provide advice in the areas mentioned. If you require more information, do not hesitate to contact us. here

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