It Patagonian governors will maintain their position against of the fiscal package tied to the Bases Law that included changes in the Income and Personal Property Tax. On Tuesday they had a virtual meeting to analyze the impact that the measures would have, if approved, and concluded that it would be harmful, not only for the workers, but also for the provincial coffers. “It is a transfer of our resources to other provinces”defined in the government of Neuquén.
The debate in the Senate began this week, not without difficulties for Javier Milei’s government. The main questions today concern the Large Investment Incentive Regime (RIGI), but also the tax chapter that includes changes in Profits and Personal Assets.
From Neuquén, collaborators of the governor Rolando Figueroa They explained that the position of Patagonians against the restitution of the tax to workers remains. «It takes away money from the province and, on the other hand, what returns from the tax sharing is barely 30%. It ends up being a transfer of resources from our province to others,” they stated.
The provincial government also evaluates as negative the modifications brought by the official proposal on Personal property because, although they considered that it will help compensate for the increase in Income Tax at the macro level, “at the micro” it will have the opposite effect because, although the level of consumption in Neuquén is high, it does not generate savings due to the high cost of life of the province. “It hits the local worker hard”they maintain.
Figueroa does not have his own senators in the Senate. He maintains a good relationship with Lucila Crexell, who after the change of management adopted the name Community for his block, but does not respond 100% to it. It is a situation similar to the one found in the Chamber of Deputies.
The eyes of the ruling party are also focused on the Patagonian bloc and the strong pressure that the leaders can exert. If the Base Law and its annexed packages such as the tax reforms have modifications or are rejected, it will return to the Lower House and will represent another tough legislative defeat for Milei.
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