The Association of Argentine Entrepreneurs (AEA) has expressed its concern over what it considers two unequivocal signs negative given by the national government in recent days. First, the decision to prevent the departure of directors of Edesur, a company that intervened days ago. And also due to an AFIP resolution which significantly increases costs for importers.
EEA encouraged that “at a time when it is essential that policy signals are given to promote the role of the private sector, unfortunately we have to highlight a couple that go in the opposite direction”.
“The recent decision by AFIP is very negative (RG 5339) through which the already very high tax burden on the formal sector is increased again the supply of imported goods and equipment becomes more expensive. This implies an additional public burden for businesses”.
“Another wrong sign is that company executives have been held accountable -as was the case with Edesur- for situations that are a consequence of the violation of regulatory frameworks which limit the necessary investments in such a critical sector as electricity distribution”.
“Argentine hope is associated with the expansion of the private sector. Only by favoring the full mobilization of entrepreneurial energies will it be possible to return to growth”.
On the resolution of the AFIP which suspends the VAT Exclusion and Earnings certificates the Coordinator of Business Convergence Forum, Miguel Blanco, warned that “once again the Government, faced with a drop in revenue due to drought, instead of lowering public spending to compensate, is resorting to increasing the tax burden on the private sector which, prior to this measure, was already one of the tallest in the world”.
“The financial cost resulting from this resolution, in a context of very high inflation, is enormous and adds to the already existing difficulties of importing inputs for production”. “As we have argued in the statements issued by the Forum, poverty reduction will be achieved with increased private sector investment and the consequent generation of employment. These types of measures go in the exact opposite direction”
Source: Clarin
