Ab. Sheyla Cuenca Flores
Department of Constitutional Law
On May 17, 2023, the President of the Republic, Guillermo Lasso Mendoza, made the decision to dissolve the National Assembly based on Article 148 of our Constitution. This measure, implemented through Executive Decree No. 741, aims to address the current challenges posed by the severe political crisis and internal turmoil.
While waiting for the installation of the new National Assembly, President Guillermo Lasso is allowed to issue decree laws of economic urgency, provided they receive a favorable opinion from the Constitutional Court. This was made effective through Decree No. 742, issued on the same day, with the purpose of boosting the economy of families and popular businesses, taking into account citizens' income and expenses.
Income Tax Reduction
According to Decree No. 742, a reduction in income tax will be granted to individuals, considering their personal expenses and other relevant aspects such as family burdens.
This fiscal relief measure will be applicable only during the fiscal year 2023.
Unique Income Tax for Sports Betting Operators
Additionally, a unique income tax has been established for operators of sports betting conducted through the internet or other means.
This tax will come into effect starting January 1, 2024, with the aim of regulating this activity and contributing to the country's revenue collection.
Awaiting the Opinion of the Constitutional Court
It is important to note that the validity of this Decree Law is subject to a favorable opinion from the Constitutional Court, which will evaluate its compliance with the Constitution and current legal principles. This process ensures the legality and legitimacy of the decisions made for the benefit of the country and its population.
With the activation of the "Muerte Cruzada" (Crossed Death) mechanism, a maximum period of seven days was established from the publication of the decree for the National Electoral Council to convene legislative and presidential elections, which will cover the remainder of the government's term. This electoral process aims to renew and strengthen the representation of the people in democratic institutions.
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