I have been impressed, after the signing of a decree by the president of the nation Javier Gerardo Milei was announced, by which foreign investors who trusted in doing business with Argentina are punished. Specifically, the decree establishes that in order to be able to transfer foreign currency from the profits of multinational companies with activity in Argentina from now on, it will be necessary to pay the country tax of 17.5% of the total amount through the purchase. of a Bopreal bonus.
We all know what an experience with bonds represents. The bonds that are issued by the central bank of the Argentine Republic generally have a secondary market and the secondary markets speak of reductions in the nominal value that range from 50 to 20% of their value. This being the case, let’s imagine what is going to happen to a foreign investor, for example a Spanish one who trusted in Argentina, placed his money here for a productive investment, closing the fiscal cycle, that man who trusted us and put his money to generate Argentine work. and pay taxes here, pay 21% VAT 35% profits 5% gross income and 1.2 check tax in addition to municipal taxes and other fees such as provincial fees if applicable. This man, in addition to paying all of this, has to pay salaries to employees with social charges that include social retirement protection and health protection and union dues, he must face the eventual rental of premises or physical location, he must pay for services, must face a process of purchasing inputs…. Well, after all that operation, if there is a profit left, that profit that results after paying all the corresponding taxes will have a new tax of the order of 17.5 up to a percentage that is not known because it will be known when the bonds create their own secondary market that is, as we said utsupra, there may be a new loss of value of approximately 30%.
The question one asks is how can it be that a president who defends the ideas of freedom and an open economy and permanently vindicates the market and capitalism places such a SCARE BIRDS TO FOREIGN INVESTORS.
Let’s imagine a meeting of European or North American or English or Asian investors in which regional investment alternatives for South America are evaluated… Would anyone be happy that the state collects all taxes and when they make a profit on the profit they want to take away 50%?
Javier’s government is a left-wing interventionist government, protectionist of local investment and angry and reluctant towards foreign investment? Or is it a government that proclaims the ideas of freedom, market freedom and investment freedom? That is why, as stated in the title, the question: either Javier Milei did not carefully read what he signed, or behind all the neoliberal or liberal anarcho discourse as he likes to define himself, is there a left-wing populist?
Or could it be that the fundraising ambition and the need to generate pesos at all costs leads him to take these measures that are something like the country shooting itself in the foot, that is, attacking its own interests, scaring away all possible foreign investment .
As everyone knows, radicalism, despite not being a liberal or neoliberal party, has supported in Congress the initiatives that the president has proposed for the reforms that he understands are necessary at this stage in Argentina. We are not neoliberal or liberal radicals. But we know how to read reality and understand the historical times of our nation and accompany a president who has just come into office so that he has the tools he needs and face the changes that he understands are those that will lead us to have a better life. Time will give its verdict and if the changes were not timely or correct, time and the results will show us whether the chosen course was correct or incorrect. What we cannot avoid is to highlight this type of inconsistencies that are worrying and that place our nation in an uncomfortable position as a country that is not very hostile to investments. We remember that there are three factors that will take Argentina forward: the work and services provided by its people, investment and the opening of credit for consumption.
Until now all the policies that have been implemented seem to converge and align behind these objectives…this presidential decree is alarmingly striking and worrying, the president still has time to change it, correct it, or annul it.
President of the UCR of Junín
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
