The National Congress outlines the parliamentary agenda for the coming weeks, after the request of the Minister of Economy, Sergio Massa, for a “rapid treatment” of the bills to promote construction, bionanotechnology, agribusiness and the automotive industry that contemplate benefits taxes, in order to increase exports in order to add reserves to the Central Bank and support productive growth and the creation of new jobs.
The Senate and the Chamber of Deputies will seek to advance in the sanction of these projects during this month since in September the focus will be on the Budget debatewhere the ruling party will put all its efforts to be able to thread the necessary agreements so that this year it can count on the law of expenses and resources for 2023.
The consensus that can be achieved with the opposition is key to achieving the sanction of the law of laws since The Front of All (FdT) only has 117 votes, with which it must have the support of the eight legislators of the Federal Interbloc, and the 4 of the United Provinces to ensure at least 129 to guarantee the approval of this initiative that was rejected last year.
Law for the Promotion of Agroindustrial Development
In the Chamber of Deputies, the FdT bloc – led by Germán Martínez – is seeking agreements with the opposition to issue the bill in fifteen days Law for the Promotion of Agroindustrial Developmentwhich aims to generate foreign exchange and new jobs in agricultural and agro-industrial production of the country’s 24 value chains.
The treatment of this project will be part of the agreements that the new president of the Chamber of Deputies, Cecilia Moreau (FdT), will promote with the heads of blocks to design a parliamentary agenda for the second semester, after having assumed that position until December , replacing the now Minister of Economy, Sergio Massa.
The discussion of the initiative will take place between Wednesday and Thursday, or at the latest the other week after the holiday of August 15, in a meeting of the three commissions with the intention of advancing in a new informative meeting to listen to agricultural representatives, with which will close the round of consultations.
Then, in another meeting, the stage of discussions between legislators will begin to issue the respective dispatches, in order to be able to penalize it on the second fifteenth of August or the first days of September.
The project of the Executive Branch aims to achieve greater industrialization in agricultural activity to export with greater added value, through the incorporation of investments and greater technology (seeds, fertilizers, genetics, among others).
The objective of the initiative is achieve in 2030 exports for 100,000 million dollars and the generation of 700 thousand new jobs.
For this purpose, the initiative – whose drafting was worked on through nine technical roundtables held between the Ministry of Economy and the Argentine Agroindustrial Council (CAA) – also proposes granting a computable fiscal credit bonus for the Income Tax for the incremental purchases in fertilizers, seeds, bio-inputs, and genetics and animal health
According to the project, machines and equipment will be able to amortize profits in three installments from now on -the usual is 10- and it will be for nationally produced goods and in terms of VAT, the term to request its refund is reduced from 6 to 3 months.
Promotion of construction, bionanotechnology and the automotive industry
For its part, the upper house will seek to pass bills to promote construction, bionanotechnology and the automotive industry, which have already been approved by the lower house.
The last two initiatives were approved by Deputies in their last session with strong support from all parliamentary benches.
In fact, the Senate has already made progress with an opinion from the committees on Infrastructure, Housing and Transport, and the Budget and Treasury on the project that extends the validity of a money laundering to specifically activate the construction sector with tax incentives for those who declare assets and that includes part of the “bridge to employment” program referring to the conversion of social plans into genuine work.
The project establishes a special tax on the value of the holding that is declared, expressed in national currency at the time of entry into the special account.
Based on the planned scheme, for goods entered from the date of entry into force of this law and until the term of 90 calendar days has elapsed, the rate that must be taxed will be 5 percent.
Meanwhile, those entered from the day after the expiration of the first term and until another 90 days have elapsed, the rate will be 10 percent; and those declared from the day after the expiration of the second term and until 180 calendar days have elapsed, will pay an aliquot of 20 percent.
The projects on bionanotechnology and the automotive industry were turned over to the committees on Science and Technology, Budget and Finance and Industry of the Upper House, after they received a wide back in the Chamber of Deputies.
The intention of the legislators is to advance next week with the opinions, so that the issues are ready to be brought to the floor as soon as possible.
The dossier on the promotion, development and production of modern biotechnology and nanotechnology contemplates extend until 2034 the validity of the tax benefits regime and its scope to nanotechnology activities.
Meanwhile, the initiative to promote investment in the automotive industry includes tax benefits such as exemption from export rights until 2031 and declares auto parts production a strategic sector.