Correa sends Capital Gain Law to National Assembly for approval

President Rafael Correa sent the Capital Gain Law, a law to avoid speculation over the value of land, and tax fixation, to the National Assembly for approval (El Telegrafo, 1 December 2016). The proposed law intends to tax the extraordinary gain in the transferring of property, which will be determined in general terms by the difference between the transferring value and the value of the acquisition. President Correa argued that historically, a small fraction of society has obtained extraordinary capital gain illegitimately stemming from the speculation in property ownership. Guayaquil's Mayor and opposition party leader Jaime Nebot (Partido Social Cristiano, PSC) believes this law has communist roots and is homage to the recently deceased Fidel Castro (El Universo).