2024-01-16 20:18:39
In the midst of the discussion of the Omnibus Law in Congress, the Argentine Industrial Union (UIA) expressed its position on the controversial aspects that impact the productive sector.
In this sense, the entity’s representatives considered that the measures might harm the competitiveness of the Argentine industry, the income of foreign exchange and the promotion of investments.
Through a statement, the industrialists showed concern regarding two aspects in particular: the negative impact that the rise in Export rights or withholdings at 15% and the Incentive Regime for Large Investments (RIGI), which excludes a certain category of companies.
In relation to the increase in export duties, they indicated that “it is not combined with the promotion of value-added exports, “which are the ones that generate the genuine foreign exchange that Argentina needs.”
According to estimates, in 2023 industrial exports totaled US$27 billion and represented 40% of the total. However, the UIA warned that “the tax pressure Due to the effect of the new duties on exports of industrial goods and food and beverages, 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 by the new official exchange rate is quickly eroded,” they added.
Industrialists ask the Government to review the increase in withholdings
For this reason, the entity requested the Government to review the increase to 15% for export industrial complexes “avoiding penalizing value addition and export output,” they highlighted.
In turn, they considered that “it is essential to exclude SMEs, which are the most affected and might lead to a reduction in production, employment and exports”, to the detriment of the national industry.
Another issue questioned by industrialists is the regulations that seek to attract big investments. In this sense, they criticized that the national manufacturing industry is excluded from the regime.
“A measure of this magnitude will have a significant real impact if it reaches and promotes the economic activity of the entire industrial sector and promotes the diversification of the Argentine export structure,” the entity observed.
In tax matter, The UIA maintains that a recognition to the taxpayer who complies in a timely manner with his tax and social security obligations, claiming that “otherwise it would be a return to a system that rewards those who do not comply more than the taxpayer who is up to date.”
Fuente: Argentine News
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