After the mega decree that changes 300 laws To deregulate the economy, the government prepares to new package of measures broader and more ambitious that will be sent to Congress to be discussed in extraordinary sessions. On Thursday Federico Sturzenegger and a group of technicians worked on the bill it contains another state reform and tax changes.
In addition to the establishment of the single paper ballot as a voting method in national elections, the Executive seeks to modify voting regimes. health, education and competition, and strengthen fiscal coffers with measures such as revocation of income tax relief for workers, money laundering and moratoriumjust like him advance of personal assets.
“We are at the final stage, at the technical legislative part to write it, the idea is that it will be dealt with in an extraordinary session, on Thursday there was a long meeting with the technicians who were looking at the reform of the State”, confirms the economist. team, while from the Casa Rosada they say that they are giving him “the latest legal hairstyle”, a task entrusted by the Legal and Technical Secretary, Javier Herrera Bravo.
Javier Milei moves with a certain caution after the strong rejection that the DNU aroused last Thursday in Congress, in the CGT and in the sectors that reacted with pot shots. Although the Executive has already called extraordinary sessions starting tomorrow, within the governing party they ensure that They have until January 31st to submit the projects.
The fiscal package is fundamental for the Minister of Economy, Luis Caputo, since it represents him more than half of the 2.2 points of GDP which will have to be collected in 2024 to balance the public accounts, as promised to the IMF. In the nine chapters of the “fiscal measures”, money laundering, moratorium and change in personal assets (0.5% of GDP) are equivalent to approximately 2.5 billion dollars.
The so-called asset regularization regime consists of extensive recycling for which a “special tax” in dollars must be paid. Regularization must be total to enjoy the benefits, with a threshold of undeclared assets that can be between 10% and 25%. as regulated by the Executive, and the deadline for joining will be valid until 29 February 2024.
The tax will be calculated on the total value of the regularized goods, both in Argentina and abroad. The assets regularized by up to $100,000 they would pay nothing and on anything exceeding this amount the rate would be 5%. “If you take it out of the banking system, you will pay 5%. If you remove it from the mattress or bring it from outside you will not pay anything”, Caputo said days ago.
It is not the first time that a government repatriates capital that evades taxes to lighten reserves and improve collection. Argentina has already done it seven times. Cristina Kircher’s management laundered $4.7 billion in 2009 and $2.6 billion between 2013 and 2015. Macri regularized more than $100 billion. In the majority, the collection It represented 5% of what was declared.
The government also proposes to increase export duties on agro-industrial products 15% and soybean flour and oil at 33% (0.5% of GDP), the return of profits to workers and pensioners (0.4%) and has already increasedl PAIS tax on imports at 17.5% for one year (0.8%), defined as a “tax” by former customs chief Guillermo Michel.
In the case of Profits, due to the repeal of the law approved by Congress and voted by Milei, it is estimated that 1.5 million workers would be reached, with rates reaching up to 35%. There are also discussions with the Liaison Council and governors. The president has already warned the latter that if they do not vote his omnibus project will “further reduce transfers” to the provinces.
Another key point of the reform is the reduction of tax rates on personal property until the 2027 tax period and the elimination of differential rates for goods coming from abroad. Payments will be progressively reduced over five years, from a maximum rate of 1.50% to a single rate of 0.75% in 2027, cancelable early.
Finally, the legislative package provides a tax benefit for large foreign companies operating in the territory by eliminating the so-called “double taxation” (paying taxes in the country of origin and in Argentina). They are now agreements signed with Japan, Luxembourg, China, United Arab Emirates and Turkey, but which have not yet been approved by Congress.
Source: Clarin
