This was stated by the head of the UIA, Martín Rappallini, within the framework of the 61st Colloquium of the Institute for Business Development of Argentina (IDEA), which is taking place in Mar del Plata.
He president of the Argentine Industrial Union (UIA), Martín Rappalliniwarned this Wednesday that the manufacturing sector requires a “equilibrium exchange rate”, while indicating that the transition towards a new economic regime “complicates the process” with “high rates and the drop in activity.”
This is what Rappallini pointed out when participating in the panel “Argentina takes the field”, within the framework of the 61st Colloquium of the Institute for Business Development of Argentina (IDEA), which takes place in Mar del Plata until next Friday.
“I believe that we have to work on systemic competitiveness, that is why We at the UIA are proposing a new productive contract, where the focus of the entire business community, politics, unions and also the educational system, is efficiency, excellence, and competitiveness,” indicated the head of the UIA.
Rappallini added that, under these conditions, “It is where we have to focus.” The industrialist clarified that, “of course, we must have a balanced exchange rate, but not extremes.”
The executive expressed this idea at a conference at that the US Treasury intervened for the second time in the dollar market to prevent it from advancing and not approaching the ceiling set by the floating band (today at $1,488).
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The businessman claimed the objective pursued by the Government of achieving an orderly macroeconomic environment, but indicated that “the regime change will be consolidated when there is really a structural change.”
“We are seeing a difficult moment of transition, because with the drop in activity and high rates, it becomes complicated. Let’s hope that all this financial turbulence can be resolved,” Rappallini stated.
In that sense, he recalled that “there is no industrially developed country in the world with a disordered macro and indicated that it is necessary to stop the financial tension,”Because if not, this path is already difficult.” To this end, he considered that it is vital to “work on very strong competitiveness at all levels, transversally, of society.”
In another aspect, Rappallini complained about the high level of tax evasion in the country. He said that “the tax pressure in Argentina is very high.”
He talked about a study that revealed that the real tax burden for compliant taxpayers amounts to 52 points of GDPwhile the effective collection of the State represents only 28 points. In that sense, he added that “the interesting thing is that this is an opportunity to reduce tax pressure and expand the taxpayer baseso that more people pay taxes.”
Source: Ambito
