2023-10-20 22:58:00
In the prelude to elections generals, businesspeople Buenos Aires residents presented a “development plan“for the most populous province in the country that contemplates a tax reform whose objective is to “enhance the growth” of the industry.
The presentation of the project took place at the meeting “We are Industry 2023“and explains that although the district of Buenos Aires “brings together 49% of the country’s industrial establishments, participates in 37.3% of Argentine exports and represents 38.5% of national consumption,” “it has been historically postponed in the distribution of federal income“.
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The claims of Buenos Aires businessmen
In this sense, the businessmen highlighted the disparities in the treatment of the Federal Co-participation led to “the different provincial governments reacting by strengthening their own collection and demanding a greater tax effort from the people of Buenos Aires“.
For the participants of the industrial event, even local administrations cannot clean up their accounts and that is why they had to “get into debt to a greater extent than the rest of the provinces during the periods of opening of the financial markets.”
On this topic, the president of the Economic Confederation of the Province of Buenos Aires (CEPBA), Guillermo Siroopined that “the province has rescinded resources but not expenses, and those expenses were largely financed by the private sector”.
From his perspective, it was the industrialists and merchants who “have endured enormous tax pressure for the financing of the provincial state, at the cost of lower productivity and competitiveness in relation to SMEs in other provinces”.
“In addition, as a complementary tool to balance fiscal accounts, work was done on the adjustment of public spending, evidenced in terms of Gross Geographic Product (GDP) as a percentage of spending lower than the rest of the provinces,” reads the document that emerged from the meeting.
For his part, the president of the Industrial Union of the Province of Buenos Aires (UIPBA), Martin Rappalliniconsidered that “in order to attend to the growth and full development of the province, Fiscal reorganization is one of the first needs that must be addressed, no matter who assumes it.“.
At the same time, business leaders judged that there is “a gap in infrastructure“in Buenos Aires territory with respect to the rest of the areas of Argentina since “the result is that the most strategic region of the country, due to its importance in industry and exports, has a enormous deficit in the provision of public goods and services”.
“The average of this gap is 1.9% of the province’s GDP and, for this year, it is projected at 1.7%. At current values, the infrastructure gap accumulated in the last two decades reaches US$ 82,456 million“, they illustrated.
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The head of the Buenos Aires Province Delegation of the Argentine Chamber of Construction (CAMARCO), Lucas Lucianostressed that “the provincial infrastructure suffers decades of deteriorationand this provincial government has made a great investment, but in order not to continue being the province with the richest fields and the poorest routes, investment in infrastructure must become a State policy.”
The axes of the “development plan” of Buenos Aires businessmen
In this way, the business associations proposed “a federal tax reform with the objective of promoting the development of the private sector” and includes “the full replacement or attenuation of the Gross Income tax“, something that has been attempted many times in Argentine history, and that would increase the competitiveness of industries in the world.”
Furthermore, they postulated a “organization of collection agent schemes (withholdings and perceptions) to reduce the burden on taxpayers due to the generation of favorable balances, together with the ordering of the operation of the multilateral agreement.”
At the level of foreign trade, they proposed a modification of the Export Duties (DEX) “As the agro-industrial chain is one of the most relevant sectors in the province, it is essential to develop a tax scheme that promotes production, investment and the generation of foreign exchange through exports.”
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“The effects of eliminating DEXs in the medium and long term should be prioritized on the productivity of the agroindustrial sector, given that it is an inefficient tax mechanism in terms of development strategy. In this case, adjustments to the rural real estate tax might additionally be proposed that favor the fiscal autonomy of the province,” they noted.
And they added: “At the same time, in urban plants, a study is proposed to change the logic of the tax, migrating from the current replacement cost scheme to a market value scheme, that is, from a collection objective to an objective of equity”.
Finally, the document supported by the businessmen from the province of Buenos Aires asserted that the stamp tax ““represents in many ways an obstacle to formalization” and, therefore, “is the main candidate in a scheme to reduce tax pressure.”
MFN / Gi
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