The Government is willing to accept changes in the Large Investment Incentive Regime (RIGI) to achieve approval of the Bases law. This is what the emissaries of the Casa Rosada made known to a group of businessmen in reserved meetings that took place in the last hours. One of the points involved would be the import of used machinery without tariffs. The industry continues to seek other modifications and the lobby with the Executive and the Senate is reactivated.
In the midst of an unprecedented sectoral crisis that includes production drops of more than 20%, layoffs and thousands of suspensions, industrialists are awaiting parliamentary negotiations. One of the chapters that attracts the most attention is the scheme that provides tax, customs and exchange benefits for companies that decide to invest more than US$200 million in the country.
It is clear that in general terms the business world today supports the creation of an exceptional regime to encourage investments. Especially because of the situation. “I wish Argentina didn’t need it, but many of the benefits that are proposed are actually returning to normality, for example in exchange terms”he told Ámbito Daniel Gonzalez, CEO of IDEA
However, objections are also raised and there is a certain consensus that the RIGI can be improved. Different representatives of the national industry participated in the debate days in the Senate and placed special emphasis on the need for local manufacturers to have tools to compete on equal terms when leveraging suppliers.
According to the different chambers that bring together companies in the sector, to achieve this objective, changes are needed in the text to which the deputies gave half a sanction because, as stated, it generates “unfair competition”. González explained it this way: “If you produce an input for a project that is qualified but that product has imported inputs, today they do not have the benefit and the industry is put at a disadvantage.”
RIGI: What changes could be agreed upon?
Opposition senators also raised questions, the issue entered the agenda and the ruling party took note. In reserved meetings that took place during the last hours, representatives of the Casa Rosada revealed to businessmen that the Government is willing to accept some changes in the RIGI in order to advance in an eventual approval of the basic law.
As confirmed by this medium with a senior official and two business sources, the changes would be linked to the demand to generate greater capillarity of local suppliers. One of the points that could be eliminated, and that generates greater discord in the industry, is the Tariff-free import of used capital goods.
Other chapters that could have modifications due to the negotiation that is taking place in the Senate are the so-called “personal income tax” and the new money laundering. In the Government they say that the proposals are “reasonable” and that the text can be polished.
The businessmen continue working to introduce changes to the text in the project. On the one hand, a group of chambers dialogues with senators, especially from the “dialogue opposition” and on the other, there are entities that are already thinking about clarifying certain points in the regulations, in case they get the sanction and become law.
The fate of the parliamentary debate has implications for the economy, not only for the RIGI. The Casa Rosada needs to achieve a minimum political ceiling to demonstrate that its plan is sustainable over time. Something that the International Monetary Fund and other organizations follow very closely before releasing fresh funds.
Source: Ambito
