In various meetings and with the aim of seeking support in the face of the resisted increase in withholding taxes affecting the countryside and the entire industrial sector. The camp and the UIA They asked that it not increase.
But the Minister of Economy assured that they are “unpleasant measures, which do not fall within our beliefs, But we need them to reach zero deficit.”
Furthermore, the minister promised that, once this situation was reached, would be eliminated.
In addition to Caputo, the meeting was attended by Federico Sturzenegger, Juan Pazo and Omar Yasín from the national government.
The UIA’s main proposal focused on the impact of the increase in withholding taxes for the industrial export sector, which reach 15%
According to estimates, the tax burden due to the effect of these new duties on exports of industrial goods and food and drink products would increase by average higher than 11 percentage points, with a direct impact on the value of external sales, “which will rapidly erode the competitiveness gained from the new official exchange rate,” they noted.
In dialogue with officials, business leaders acknowledged “efforts to achieve zero deficit and macroeconomic order, as well as resolution of inherited commercial debt. And they have ratified their support for the labor chapter of the reforms proposed by the government and will appear as amicus curiae before the Supreme Court in case it suspends the application of the DNU.
Rioja’s Daniel Funes asked The above export duty rates on industrial products are being revised. “We expressed to the minister our strong concern about the increase in withholding taxes as we believe it penalizes the export of Argentine added value. “We understand that these would be temporary measures in the context of a very delicate economic situation.”
“We have in the country more than 50 thousand industries, with more than 1.2 million formal jobs, responsible for 20% of GDP and 40% of exports“, they underlined by calling for the exclusion of SMEs from export duties, as they are “the most affected and could lead to a reduction in production, employment and exports”.
Businessmen gave several examples of the impact of withholding taxes on exports.
In the case of agri-food the brewery could lose exports of 150,000 tons of malt, worth around $100 million. “This loss is greater than the potential impact of export duties estimated at $24 million, and that market would be occupied by Uruguay and Brazil,” they noted.
The metal industry would be out of competition due to prices. They employ 300,000 direct workers and one million added to those indirect with the supply chain. The sector exports to 155 countries. The same goes for auto parts, with shipments of $370 million.
“We have been paying withholding taxes for 21 years. It was useless. We have greater poverty, the only thing it has done is leave producers with less profitability and will exclude them from the production cycle,” the industry leaders said.
Source: Clarin
