This Tuesday, the Senate of the Nation began with the treatment of the bill of the so-called “Bases Law”, so called because it aims to be a comprehensive change in various aspects such as labor and tax regulation and also promotes an incentive regime for the big investments. To find out how to look at this package of laws from the business world, specifically from SMEs, Zonda Diario spoke with Dino Minnozziholder of the Economic Federation of San Juan (FESJ).
“We see it well because they are laws that regulate and talk about labor modernization and the regularization of bureaucracy. We believe that no one can be against that,” the businessman introduced.
In this sense, he explained his economic vision by pointing out that the economy has three points that must be addressed: “First, low taxes, because Argentina has a high fiscal pressure. Second, labor modernization, because there are contributions and contributions that are not going to workers and they are 60% of what we have to collect in hand. Finally, we must solve the issue of bureaucracy, regulations, controls and everything that slows down the economy.
When will the changes be seen?
“It is not easy, but I think it will be a heterogeneous growth, it will not be homogeneous. Some sectors are going to start before others, those that are capable of exporting and that have the machinery in good condition and the product ready, and that give the conditions so that they can export with legal, labor and fiscal security, they will start first,” Minnozzi responded.
The businessman highlighted that the idea of this package of laws is that there is labor regularization, “since there are many people who are working informally and when everything is formalized, both the worker and the businessman will be calmer.”
How is the economic situation in San Juan?
“We have received a report from CAME and we see a rebound in commercial activity. Although it is still negative, it gives us 7.3% less compared to the same month last year, but 1.6% higher than the previous month. So it gives the impression that there will be a rebound in commercial activity, something that we see as encouraging. It is still missing, but given the reasonable activity, it can happen in the coming months,” explained the businessman. In this sense, he explained that if national data comes in San Juan, the data is sent and it is average.
And for those who know economic graphs, Minnozzi highlights that the report gives a V, therefore, he is hopeful.
More about the situation
Retail trade continues to feel the decreasing dynamics of the purchasing power of consumers, who have cut spending in all areas. The only sector that emerged from this trend is clothing and textiles, favored for three reasons: due to the proliferation of offers; due to the very low base of comparison, since the industry has been very weakened since the pandemic; and due to the slowdown in prices in this particular item.
In the fourth month of the year, the return of interest-free installments could be observed in some stores selling appliances and construction materials, above all, which helped improve sales.
This emerges from the SME Retail Sales Index of the Argentine Confederation of Medium Enterprises (CAME), prepared based on a monthly survey among 1,276 retail businesses in the country, carried out on May 2 and 3.
