By a single vote difference, the Argentine president, Javier Mileiscored a point in his favor after the nation’s Senate carry out your law on scrapping the Stateits Bases Law, on a day marked by social protests and altercations at the doors of the Argentine Upper House.
The vice president, Victoria Villarruel, managed to break the initial vote on the initiative, which ended with 36 votes in favor and 36 against. A project that will allow deregulate the economy, promote privatization of public companieslabor flexibility, as well as promote tax benefits to large investors. For this decree, there were many concessions from the current government for it to be approved. The law must return to Deputies to be validated.
Previously known as the omnibus law, the Government cut 441 articles from the previous star reform proposed by Milei. In labor matters, it will make employment contracts more flexible, extending the trial period from three months to one year. It also contemplates the replacement of compensation with a severance fund deductible from monthly salary. Finally, Argentine SMEs will be able to employ up to five workers under the monotax modality.
Privatization of public companies
Of the 41 salable companies contemplated by the previous Omnibus Law, only eight will pass into private hands. These are Energía Argentina SA, Intercargo, Aguas Argentinas, Sociedad Operadora Ferroviaria, Belgrano Cargas train, Corredores Viales, Nucleoeléctrica Argentina SA, and Yacimientos Carboniferos Río Turbio.
They will remain in the hands of the State companies like Argentine Airlines, Correo Argentino and Argentine Radio and Televisionafter the transfers of the Executive, initially included in the omnibus law in the list of companies that will be privatized.
Large Investment Incentive Regime (RIGI)
The Government also accepted modifications in the RIGI, which will be delimited for sectors such as infrastructure, mining, energy and technology. This is a regime that provides tax, customs and exchange benefits for 30 years. As established in article 162 of the new Bases Law, it also provides legal security and an efficient system of protection of acquired rights.
This regime, established to attract investment projects exceeding 200 million dollars and also foreign capital, has aroused criticism. Excludes small and medium-sized businessesGiven the the minimum investment ceiling is 200 million dollars) and the possible unfair competition that it may generate. With the RIGI, the tax on the right to export copper, lithium, gold or gas will be zero.
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