Economic driving provides for carrying out a set of announcements for the next weekafter PASSED, as reported by the Palace of Finance. They include the preparation of draft budget for 2024 with zero deficitthe possibility that importers who use their own dollars do not pay the PAIS tax, VAT or statistical fee and a fertilizer financing program for producers. Also the start of lithium export programthe call to bidding for the reversal del Norte gas pipeline to export gas and the signature of contracts with multilateral organizations for 500 million dollars.
zero deficit
Next week the officials responsible for public policies will be called to formulate a calculation of resources and flow of expenses for the elaboration of the budget bill for the year 2024 whose result is zero primary deficit.
To this end, it is considered essential that the Message for Elevation of the 2024 Budget Bill, to be submitted for consideration and analysis by the Honorable National Congress on September 15, include a separate section detailing the impact of tax spending on public accounts, as was done on the occasion of submitting the Project of the current Law No. 27,701 on the General Budget of Expenses and Calculation of Resources of the National Administration for the fiscal year 2023.
The official information indicates that the term tax expenditure is set of tax reductions that reduce the tax obligations of certain taxpayers, usually business groups and large firmswhich causes a decrease in public tax resources.
“That is why your Reduction is a way that would strengthen the resources of the public sector, have more financing for the development of priority public policies and, as postulated, achieve zero primary deficit in the 2024 Budget Law of the Argentine Republic”, maintains the communication from the Ministry of Economy.
It is considered that the financial weight of the tax expense and other similar business benefits (consigned in the Offprint included in the Message of the aforementioned Law No. 27,701) “it is significant”: it is equivalent to approximately 4.5% of GDP, “so its reduction is crucial to achieve the proposed fiscal goal of a zero primary deficit for 2024”.
It maintains that “the Offprint Impact of Tax Expenditure on Public Accounts included in the Message of the 2024 Budget Bill will facilitate the analysis and identification -by legislators- of those business tax benefits that can be reduced or eliminated in order to enable the approval of a 2024 Budget Law with a zero primary deficit, which will result in an orderly and predictable fiscal framework for said fiscal year”.
Laundering for imports
Additional benefits are provided for the “Argentine Investment and Production Incentive Regime” that enables subjects residing in the country to declare their holdings of foreign currency, in the country or abroad, from 12/1/22 and until 11/24/23, inclusive.
The declared funds must be deposited in a special account and must be affected, only, to the transfer of foreign currency for the payment of imports for consumption, including services, destined to productive processes. Likewise, said funds are subject to the payment of a special tax, the rate of which increases according to the term of their declaration with rates ranging from 5% until March 1, 2023 to 20% until November 24 of the coming year.
Among the tax benefits to which subjects who adhere to the aforementioned regime have access are the exemption from paying taxes that they have omitted to declare and the release of all civil, commercial, tax criminal, exchange criminal, customs criminal and administrative offenses.
In order to strengthen this regime, it is proposed to grant subjects who access the “Argentine Investment and Production Incentive Regime” that belong to certain sectors and/or carry out specific activities, the following additional benefits:
- Suspension of the Value Added Tax (20%) and Income Tax (6%) collection regimes, which fall on import operations.
- Non-application of the “Tax for an Inclusive and Solidarity Argentina (PAÍS)” to imports of merchandise reached 7.5%.
It is considered that the adoption of these measures will result in financial relief for the aforementioned subjects, consequently promoting access to the externalization regime.
Stimulus for agriculture
The Ministry of Economy informed that 100 kg will be made available. of urea per hectare for small and medium producers who have planted these cereals in districts declared in agricultural emergency.
This ministry created the Wheat and Corn Planting Program that will allocate a total fund of 8.9 billion pesos “to accompany the small and medium producers of wheat, durum wheat and/or corn in improving the yields and grain quality obtained at harvest for the 2023/2024 campaign.”
Through the Secretariats of Agriculture, Livestock and Fisheries, and of Development Planning and Federal Competitiveness, this initiative aimed at small and medium-sized producers will be implemented, in order to promote an increase in the average doses of nitrogenous fertilization that provide protein. in grain and replacement of nutrients to the soil, thus promoting a sustainable increase in the yields and quality of the grain obtained.
For this, 100 kg will be made available. of urea per hectare up to a maximum of 5,000 kg to each beneficiary who meets the following requirements:
lithium export
The Cauchari-Olaroz project, Minera Exar (lithium) announced that during August it will carry out its first export of lithium carbonatebeing the merchandise in the port and ready to embark.
The company It plans to export around USD 100 million until the end of the year.
mining exports
Another of the issues analyzed by the economic leadership was the evolution of mining exports, which in July totaled USD 377 million, which meant an increase of 24% year-on-year.
In the accumulated of the first 7 months of 2023, exports reached a total of USD 2,321 million (4.3% year-on-year increase). Thus, mining exports reached the highest level since 2012 for the accumulated of the first 7 months of the year.
Mining exports accounted for 6.8% of total Argentine exports in July 2023 and 6% accumulated in the first 7 months of 2023. This shows an increase of 1.7 percentage points in the year-on-year comparison compared to the same period of 2022.
Energy
The Ministry of Economy reported that It is already in a position to launch the tender for the reversal of the North gas pipeline that will allow gas to be exported. The works will be financed by CAF and the Bndes. The notes of the Central Bank were sent to proceed with the payment of the advance for the acquisition of the pipes and advance in the bidding
Through this and other works, it is expected that the country’s energy balance will go from a deficit of more than 4,000 million dollars in 2022 to a surplus of almost 3,800 million dollars next year.
international financing
The economic leadership is managing credits in international organizations for a value of US$1,485 million US dollars.
- World Bank (IBRD): They are credits for Energy, Health and Territorial Development and Habitat and Public Works for a total of 1050 million dollars.
- Inter-American Development Bank (IDB): They are credits for Strengthening Educational Trajectories in the Province of Buenos Aires” ; Energy; Knowledge Economy and Science and Technology Agency for a total of $260 million.
- Development Bank of Latin America – CAF: To carry out works of the Ministry of Transport and Productive Rural Roads by $175 million.
Source: Ambito
