the government analyzes the reestablishment of a subsidy

the government analyzes the reestablishment of a subsidy

The Imesi refund for the use of returnable containers was valid until 2021 and, with modifications, would improve competitive conditions.

The government is analyzing various alternatives to face the announced closure of the plant. Mines of National Beer Factories (FNC) and the dismissal of 150 workers, with the consequent general strike carried out as a measure of force by the sector’s union. Among them, one of the options that is being analyzed is a “subsidy” on returnable packaging that had been eliminated in 2021.

The situation surrounding the closure of the FNC plant and the involvement of the Executive power generates controversies on many levels but, beyond the labor issue, the fear for tax increase to maintain a business that—according to different analysts—is uncompetitive due to the characteristics of the internal market, is predominant in public discussion.

In this context, the government is analyzing alternatives for the conflict and, according to the interim minister of Industry, Energy and Mining (MIEM) Walter Verrithe reestablishment of “a benefit to the use of returnable packaging” is one of the options being considered.

An alternative to improve competitiveness

The measure is an initiative implemented during the previous government that establishes the return of Specific Internal Tax (Imesi) by the use of returnable glass containers, as long as they are of national production. This was in effect until 2021, and could be implemented again, although with modifications, in response to the “growing import of low cost cans that reach values ​​that are impossible to match with the conditions in force in Uruguay for the national industry”; problem that FNC pointed out as the reason behind the closure of one of its plants.

In this way, with the return of the Imesi one of the cost factors that make up the final price of the product would be reduced, improving the conditions of competitiveness.

“The issue is in the ministries of Economy, of industry and Atmosphere”, Verri pointed out in this regard, and clarified that the final decision will be made by the portfolio led by Azucena Arbeleche. Meanwhile, next Tuesday they will meet at the headquarters of the MIEM government representatives with FNC authorities.

The interim minister also recalled that the “benefit” to the use of returnable containers had been eliminated due to the lack of national “glass industry”. “It made no sense to have a standard that could not be met. It does not mean that it cannot be put back with other conditions, without saying that it has to be a national industry, at least for now that we do not have a glass industry. In It was definitely for the environment. We are analyzing it,” said Verri.

Source: Ambito

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