Engaged in a “cultural battle” against inflation, the Government has taken its first steps facilitate the imports of almost 3,000 products of the basic basket and reduced the period for accessing dollars. The rule was made official on Thursday, but some banks They have doubts and there are no signs yet regarding the promised suspension of VAT collection additional tax and income tax.
Since last week, the Minister of Economy, Luis Caputo, has referred the discussion to his Secretary of Commerce, Pablo Lavigne. The head of the collection body, Florencia Mizrahi, also spoke. “It starts this week, but it depends on the AFIP machine”, you read in an official dispatch. “We are working with Commerce,” sources from another area said.
The authorities evaluate the fiscal cost of the suspension the advance of taxes due to its impact on collection, in the midst of the recession and the decline in turnover. According to official data, income in February it fell 8% year-on-year in real terms, despite the Government maintaining the PAIS tax and increasing the rate on goods and freight, a tax which is due to expire at the end of the year.
On the other hand, the banks still They must adapt their systems to the changes ordered by the Central Bankwhich imports made official from 15 March of goods from the defined basic basket will be able to access to the importing dollar, by almost $1,000 (official tax + PAIS of 17.5%), within a 30-day period from the registration of entry to customs. The tap will be opened in April.
This represents a certain advantage for those who import food, drinks and cleaning, care and personal hygiene products, as well as medicines. The fact is, to access official dollars, the rest of the elements must staggered and long-term manner (in four equal and consecutive parts, at 30, 60, 90 and 120 days), which explains the low payments in some sectors.
Presidential spokesman Manuel Adorni announced the opening of imports last week, after failed talks Caputo had with consumer producers to abandon 2×1 promotions and lower shelf prices. Since then, the minister has made his claims public and tensions with the companies have increased.
As far as he knew Clarion, CAME and other Chambers have requested a meeting with the economic team. On Wednesday, Lavigne urgently received the head of the Coordinator of Food Industries (Copal), Daniel Funes de Rioja, and a group of executives, who expressed their concern about the distortion that would generate “indiscriminate opening” and they asked for more time.
But Caputo this Saturday lashed out at dealmakers and discounts because “many people can’t or don’t want to carry 2 units with them.” ““Everyone priced their products taking into account the omens of a dollar of 2 thousand or more,” He argued and insisted that despite the dollar’s decline, the decline in selling prices “is not reflected in the statistics.”
Although INDEC reported last week that inflation in February fell to 13.2% monthly (below market expectations), the government is worried about the March data. Consulting firms estimate a slight acceleration which could bring the index around 15% due to the inertia still present, the adjustments in services (energy, transport and prepaid) and in joint ventures.
Large food producers believe the conflict is due to the minister’s lack of “understanding” of the dynamics of inflation. Some even warn that the measure would encourage them to import finished products, instead of producing them in the country. “Totò (for Caputo) doesn’t understand the impact very well, he doesn’t know commercial policy, he’s a broker who hasn’t managed companies for 20 years,” fired one CEO.
For the head of CAME, Alfredo González, “the possibility of paying within 30 days and the deferral of VAT plays against SMEs who pay 120 days for supplies and machinery“. While the Argentine Federation of the Wood and Related Industry (FAIMA) warned that the measure, added to the increase in furniture imports in January and the drop in demand, could generate “mass layoffs”.
Source: Clarin
