Yesterday the Government sent governors and legislators a new draft of the “omnibus law“(Law on the Bases and Starting Points for the Freedom of Argentines) which aspires to be approved before May 25, the date on which the “May Pact” will be signed.
The project is an updated and reduced version of the one that failed in the Chamber of Deputies in February, despite the general approval by majority. And once again his keys are privatizationswho will donate dollars to the government get out of stocks or evendollarize the Argentine economy, in a movement similar to that implemented by Carlos Menem in the 1990s with Convertibility; He public employment; and the Incentive Scheme for Large Investments (RIGI)above all.
RIGI is one of the big bets for the arrival of millions of dollars, especially in the sectors of energy and miningwho expect long-term legal and fiscal stability, accelerated depreciation and, above all, the free availability of their currencies and profits to be able to take them out of the country.
As for privatizations, the project would authorize the President of the Nation to sell them in full Argentine Airlines, Argentine Energy (Enarsa, responsible for the Santa Cruz pipelines and dams) and the Public TV. Furthermore, Agua y Saneamientos Argentina can be privatized or granted 100% (AySA), He Mail Argentine, the Belgrano Cargas, the trains of passengers -Sociedad Operadora Ferroviaria, SOFSE-, the highways and coal deposits Murky river (YRCT).
Meanwhile, a limit is set so that private individuals can only purchase 49% and the national state retains 51% of the company’s shares. nuclear power plants -Argentine nuclear power plant, NASA-, ARSAT (satellite telecommunications) e National Bank and all its subsidiaries.
Compared to the first version, presented in December, the ports (AGP), Dioxitek -nuclear supplies for medicines and energy-, the aeronautical factory (FADEA), INTA -agriculture- and YPFamong many other state and joint ventures.
As regards the large investment regime, the 65 articles of the previous project remain intact and 4 new ones have been added. “The latter explicitly shows the importance that the Government attributes, despite its liberal-libertarian narrative, to a regime of incentives and promotions. For this reason yes, there is money or, at least, margin to stop collecting it”, analyzed the former Undersecretary of Hydrocarbons and head of the Paspartú consultancy firm, Juan José Carbajales.
The projects admitted to RIGI will be those that have an investment commitment of at least 200 million dollars and will enjoy a 25% income tax rate and accelerated depreciation, non-payment of tax on allowances, exemption from import taxes, as well as They will have all the foreign exchange generated by exports 3 years after their accession.
And in the public sector, the Government is seeking the green light to reassign functions, make state employees available, warn them, suspend them and fire them for various non-compliances.
Source: Clarin
