The Market operators were somewhat shocked by the result of the vote in the Senate of the so-called fiscal package, especially due to the rejection of the restitution of the Income Tax and the modifications in Personal property. But they believe that there is still room for reversal in the Chamber of Deputies.
“Beyond that It is bad news as it does not reach two-thirds, when it passes to the Chamber of Deputies with a simple majority it is approved. The Government lost because it was rejected, but it won because the opposition did not reach two-thirds,” he explained. Martín Polo, from Cohen Argentina. That is why the analyst considered that ““The market is going to be seeing this.” and therefore should not prevent them from improving.
A similar reflection gave Ambit the holder of the consultant Ledesma, Gabriel Caamaño, who considered that ““The suspension will be extended for two weeks.”. The economist considered that the changes introduced by the senators “they hit the waterline” of the package What the Government had in mind. In a way, now the economic team requires that the deputies insist on the original project.
In the latest public presentations made by the Minister of Economy, Luis Caputo, promised that once the laws have been passed by Congress, their first objective is reduce the PAIS Tax rate by 10 points, which is 17.5% and makes imports more expensive.
As tax collection is now, it is unfeasible for the Executive Branch to be able to touch that tax because its production It is equivalent to the fiscal surplus that has been accumulating over the first five months. Everything complicates, even the exit from the stocks, analysts say.
In fact, the Chief of Staff, Guillermo Francos was already getting to work with the deputies of Libertad Avanza to analyze how the laws were left after the changes. and see how to insist on the original package.
The elimination of Income Tax of the fourth category takes away from the Government resources that are estimated at 0.4% of GDP, while the elimination of the reduction in Personal Assets would make money laundering, which survived, unattractive.
Hernán Letcher, from the Center for Argentine Political Economy (CEPA), considers that Deputies would be in a position to insist on the original project.
“It seems reasonable to me that Personal Assets and Profits were voted against. In fiscal terms it is more or less equivalent in value”, he explained. The economist considered that “1.2 million workers were being made to pay taxes and taxes were being forgiven for 200,000 richer people.”
Despite this, he maintained that, if the Personal Assets reduction is permanently withdrawn, it could affect money laundering, which could complicate Caputo’s plans to reduce the PAIS Tax. “I think they were going to replace it due to money laundering and the moratorium, because Profits and Personal Assets are compensated,” he said.
Mariano Ghirardotti, university professor and tax expert, considered that the senators “are leaving the fiscal package lame”. “The truth is that seeing a technical issue in the hands of politicians and their advisors of dubious suitability is annoying,” she explained through her social networks.
Likewise, the tributary Iván Sasovsky He pointed out: “To be clear, Deputies with a majority can reject the changes and the tax package, Profits, Personal Assets, Monotax “They will be law without having to go through the Senate again.”
While the radical deputy, Martín Tetaz said: “My reading is that Deputies are going to accept the changes negotiated in the Senate (privatizations, pension moratorium, proportional benefits, etc.) and reject those that were imposed (Personal Profits and Assets, etc.).”
Source: Ambito
