through the Decree 377/2023 and 378/2023 published this Monday, July 24 in the Official bulletinthe measures with which the Government hopes to generate a collection of US$2,000 million they were made official.
Dollar: Export Increase Program
Decree 378/2023, published with the signature of all the ministers of the National Cabinet sets a value of $340 per dollar for exports made under the Export Increase Program (FOOT). The measure also dictates that the export valuation system will be maintained Until August 31 2023, although in the case of grains, the obligations have a closing term of November 30, 2023.
The PIE is a program implemented by the National Government to encourage exports and inflate the reserves of the Central Bank. The reference value for exports of $340 per dollar is higher than the free exchange market value. This means that exporters can receive more pesos for each dollar they export, which would motivate them to export more.
The decree also establishes that the Central Bank implement the necessary mechanisms so that the result of all liquidation of foreign currency materialized within the framework of this Program is, at the exporter’s option: i) credited in a special account whose remuneration is determined based on the evolution of the reference exchange rate of the Communication “A” 3500 of the mentioned entity, being able to remain open without expiration date; or, ii) applied to the direct subscription of BCRA Internal Bills in US dollars payable in pesos at the Reference Exchange Rate of the Communication “A” 3500 (LEDIV).
Dollar savings: the officialization of the increase
Decree No. 377/2023 extends the scope of the Tax for an Inclusive and Solidarity Argentina (COUNTRY) to the purchase of foreign currency banknotes and currenciesboth for hoarding and for the payment of obligations for the acquisition of personal, cultural and recreational services, freight services and other transport services for operations of import or export of goods, and imports of merchandise.
The tax will be applied to operations purchase of bills and currency in foreign currency. The tax rate will be 25% for banknote and currency purchase operations in foreign currency for hoardingand ofl 7.5% for banknote and currency purchase operations in foreign currency for payment of obligations.
Savings dollar: the destination of the taxes applied to the exchange rate
According to Article 5 of the Decree of the tax that is collected, incrementally, by application of the provisions, must be distributed as follows:
- SIXTY-FIVE PERCENT (65%): to the financing of Programs in charge of the NATIONAL SOCIAL SECURITY ADMINISTRATION (ANSES);
- FIVE PERCENT (5%): to the NATIONAL INSTITUTE OF SOCIAL SERVICES FOR RETIRED PEOPLE AND PENSIONERS (INSSJP), to cover their benefits,
- THIRTY PERCENT (30%): will be assigned in accordance with the provisions of article 2 of Decree No. 184 of February 26, 2020.
Source: Ambito
