The President Javier Milei He promised the businessmen of the Argentine Industrial Union (UIA) that by the end of the year he will comply with the mandate of the PAIS Tax Law, which determines its expiration on December 31, 2024 while ratifying the continuation of tax cuts.
The president was the main speaker at the meetingl Industry Day that took place at the UIA headquarters on Avenida de Mayo, where he was accompanied by the head of Cabinet, Guillermo Francos and the General Secretary of the Presidency, Karina Milei, among others. The business centre celebrated 130 years since its creation.
“In December, the disastrous PAIS Tax will end.Milei said after claiming that his administration is the first to have fulfilled the promise of reducing taxes created temporarily, such as the tax on the sale of dollars.
In this regard, the head of state told the businessmen that “The best industrial policy is to have a good fiscal and monetary policy,” while he raised how the Government will continue reducing taxes “That means we will continue to reduce spending.”
In the matter of trade opening, Milei told the industrialists that “we are not going to leave them stranded” and promised them that “we will open the economy when the structural conditions are met.”
However, he criticized that there are sectors of the industry that “They were used to hunting in the zoo” and predicted that when all the changes to the sector policy are implemented “not everyone is going to win.” “Some will progress and others will fall by the wayside. “Those who don’t need a job will do well,” he said.
On another note, He called them “econochantas” to economists who belong to schools that promote state intervention to foster industrial development.
In this regard, Milei said that “the supposed sectoral development policies at the cost of a shattered macroeconomy are destined to fail.” “Everything we are used to hearing in this matter is a scam. Taking from some to give to others is not economic policy. “When someone talks about boosting industry while issuing 13 points of GDP, that person is a scammer,” he said.
The UIA’s claims
Part of the president’s message was aimed at discrediting the “pro-industrial” economic narrative to which sectors of the business entity subscribe, especially those representing SMEs. Precisely, before the president’s speech, the president of the UIA, Daniel Funes de Rioja, had pointed out that ““The nations considered developed in the world have industry.”
The chief executive of the manufacturing plant said that although businessmen are not opposed to economic openness and competition, he clarified that they intend to do so “on equal terms.” He also pointed out that there are extra costs in Argentina in terms of taxes, logistics, financing and infrastructure.
Industry declines, according to UIA data
In parallel to this initiative that received the approval of the UIA, the latest report of the entity revealed that in June of this year the Industrial activity registered a fall of 19.5% in the annual comparison and has been declining for 13 consecutive months year-on-year.
In the first half of the year, the sector accumulated a decline of 14.1%, although the UIA estimated that the fall could slow down in the third quarter of the year. In this context, the businessmen that make up the sector are from heterogeneous sectors, with some activities that are beginning to see recovery and others that do not yet see it.
Labor reform underway
Last Tuesday, the UIA leadership had lunch with the Minister of Human Capital, Sandra Pettovello, who is in charge of the Ministry of Labor, headed by Julio Cordero, an official who also participated in the meeting.
At that meeting, the businessmen expressed some of their usual concerns, such as the drop in sales and production; the compensation regime; factory blockades; the situation of SMEs facing the challenge of RIGI and the opening of the economy.
Source: Ambito
