At Esteban Echeverría we offer more tax exemption, but the rates can suffocate our industry

At Esteban Echeverría we offer more tax exemption, but the rates can suffocate our industry

With great effort, we managed to extend the tax exemption from five to ten years, but a virtuous circle of productive development also depends on rates that allow sustainable economic functioning.

In the midst of a period of public hearings for the tariff adjustment of electric energy distribution and transportation services, I am especially concerned that basic electricity and gas services – as well as transportation – are treated without clear criteria to favor productive matrix of our country. The national government has chosen the path that only threatens the socioeconomic development of Argentina.

From our experience in public management we know very well that, to achieve a balance in growth, the State must act as a catalyst to guarantee the productive sector favorable conditions for its operation. And, to achieve this, effective measures must be applied that include all actors.

In Esteban Echeverría, in particular, we have implemented a series of countercyclical policies to offer companies a set of benefits that encourages them to settle in our district. Starting in 2024, any company that opens its doors in our industrial hub and employs residents of our towns is immediately exempt from paying municipal taxes for ten years.

Although the program I invested in Esteban Echeverría It dates back a few years, when I assumed my new mandate in December 2023 I presented a project to the Deliberative Council to extend the tax exemption from five to ten years. Upon approval of this municipal ordinance, all companies will be welcome in our district with the benefit of a decade of exemption from fees and duties of up to 100% if they employ the residents of the towns of Esteban Echeverría.

From the beginning of our management, we had the firm decision to invest and modernize the infrastructure, services and public spaces, access roads and routes, in addition to guaranteeing optimal sanitary and environmental conditions to benefit the industry. However, all our efforts will be undermined if energy rates are unreasonable.

If unregulated fare increases persist, they will directly affect the daily lives of all districts

If sustainable access to electricity and gas is not ensured, not only cannot businesses start up due to high costs, but an optimal scenario for them to operate efficiently cannot be provided. This means that, if deregulated rate increases persist, they will directly affect the daily life of the districts where small and medium-sized businesses must operate. Added to this, the state of the health sector, the general urbanization of the localities, the living conditions of the people will become precarious, and will clearly affect the entire comprehensive security and monitoring system of the district, among many other factors. For this reason, a balance must be found so that local economies are not destroyed and the general well-being of the community is safeguarded.

Now, given the imminence of energy rate increases, a clear and concrete investment program in the public network is urgently required. In other words, the increases must not only compensate electric companies but must also be used to invest in the grid. This also requires a regulatory body that efficiently controls improvements to the system.

For years, I have participated in public hearings so that energy companies respond efficiently with adequate service for homes and our industries. In 2023, we signed a new agreement that revalidates and extends for five years the concession term of the property assigned for the construction of the Transformer Substation in the Luis Guillón industrial park.

This is a work that will ensure a new source of energy for Esteban Echeverría. In this way, the electrical energy distribution capacity will be significantly increased, which will represent greater availability of the service in our district, will contribute to the stability of the electrical supply and will be additional support for high demand scenarios. All of this, without a doubt, will not only benefit our neighbors, but will translate into optimal conditions for industry and commerce.

As the UN maintains in one of its Sustainable Development Goals, States must guarantee access to affordable, safe, sustainable and modern energy for all people. Meanwhile, at Esteban Echeverría we work to encourage production and work. And, as a local State, we promote a virtuous circle between society, the productive system and the environment. Therefore, we need reasonable energy rates, and that the necessary investments be made to promote development.

Mayor of Esteban Echeverría

Source: Ambito

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