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Ecuadorian President Noboa submits economic draft bill to Parliament

Quito, Nov 28 (Prensa Latina) Ecuadorian President Daniel Noboa on Tuesday sent the Urgent Economic Draft Bill, his first action to counter the crisis that the country is going through, to the National Assembly.

It is the Organic Law on Economic Efficiency and Job Creation which, according to the president, has great importance in tax matters, the generation of youth employment and the attraction of investments.

The Executive has disclosed that one of the main tax benefits of the draft bill is the rise in Income Tax deductions for companies that increase the hiring of young people between 18 and 29 years of age.

According to the director of the Internal Revenue Service (IRS), Damian Larco, companies that hire more young people will be able to deduct 100 percent of the expenses incurred for the payment of salaries and social benefits for contributions to the Ecuadorian Institute of Social Security (IESS) from their income tax.

The requirement would be that the increase in employment be maintained for at least six months, Larco told the Primicias website.

He insisted that the spirit of this first tax reform is that by reducing taxes to companies, sales will increase in order to boost the economy and thus raise more money.

Starting on Monday, the unicameral Parliament has 30 days to debate the President’s proposal, which could come into force early next year.