2024-01-16 20:35:00
The Argentine Industrial Union (UIA) criticized the general increase in export duties to 15% and the Large Investment Incentive Regime (RIGI), which excludes a certain category of companies, included in the so-called Omnibus Law that is being discussed in Congress.
In a statement, the entity considers that these measures might harm the competitiveness of the Argentine industrythe income of foreign exchange and the promotion of investments.
In relation to the increase in export duties, they indicated that “it is not combined with the value-added export promotionwhich are the ones that generate the genuine foreign exchange that Argentina needs.”
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According to estimates, in 2023 industrial exports totaled US$27 billion and represented 40% of the total. However, the UIA warned that “the fiscal pressure due to the new duties on exports of industrial goods and food and beverages will increase.” “They would increase on average more than 11 percentage points.”
As a consequence of the direct impact on the FOB dollar value of external sales “the competitiveness gained is quickly eroded due to the new official exchange rate,” they added.
Another issue questioned by industrialists is the regulations that seek to attract large investments. In this sense, they criticized that the national manufacturing industry is excluded from the regime.
The position of the UIA in Deputies
On the fifth day of debate in the Chamber of Deputies of the Omnibus Law project, the executive director and chief economist of the Argentine Industrial Union (UIA), Diego Coatzasked that they be “6 or 8%, at least until mid-year.”
“The project aims to increase export contributions to 15% and negatively impacts the added value of exports,” he stressed, and warned that “5,000 companies stopped exporting in the last decade.”
“We propose a transition until mid-year of withholdings at 6 or 8% so as not to continue losing exporting industries,” said the industrial representative when participating as a speaker in the plenary session of the General Legislation (head), Budget and Treasury and Constitutional Affairs commissions. .
In addition, Coatz proposed the implementation of a tax incentive regime for companies because “the project does not recognize those who have complied in a timely manner with (the payment of) taxes.”
Meanwhile, he warned that “the domestic market in the coming months will be less dynamic and exports are key to generating foreign currency.”
In that sense, the director of the UIA stated that “the supplier development policies “They must be key to generating a federal productive ecosystem.”
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