Within the framework of the changes that the Omnibus Law underwent – which was approved in general and must return to Deputies – one of the most sensitive points and in which the Government was most interested was the Incentive Regime for Large Investments (RIGI). . That article had, broadly speaking, four modifications that were made in the debate in the Senate, among which stand out a mandatory national contracting and purchasing quota, and the cutting of benefits for some economic sectors in particular.
With the idea of getting votes in the Senate, the modifications that were introduced are the following.
1. Fewer sectors reached. After the changes, article 165 establishes that the RIGI will be applicable “in projects in the agroforestry, infrastructure, mining, energy and technology sectors that meet the established requirements.” That was in the first instance, but later more items were added, including tourism, oil and gas, and steel. It thus delimits a universe, although broad, less free than the project that came from Deputies.
2. Buy National. Article 74, section L now includes that local suppliers must be hired for at least 20% of the total investment allocated to suppliers. The radical senator Martín Lousteau had asked for at least 50 percent, because 20 is a number that can almost be met. It is worth saying that the modification clarifies that this will be done as long as the offer from local suppliers is available and under market conditions in terms of price and quality. This will have to be maintained during the construction and operation stages.
Page I12 consulted sectors linked to the industry, including the Argentine Industrial Union (UIA) and the ADIMRA Association of Metallurgists who said, on this point, that the idea is to wait to see how the regulation emerges. “We are cautious but we are expectant, because The RIGI has to serve to enhance the national industry and its development” confirmed official sources from the chamber of metallurgical SMEs. It should be noted that the modification of the local purchase had been a very strong demand from the national industry, which saw itself competing at a loss against the benefits granted by the RIGI. The other point that was not modified and that was also requested by the industries was the guarantee of zero withholdings for 30 years for those who invest, which harms both the industry and the agricultural sector.
On this point, from the Scalabrini Ortíz Center for Economic and Social Studies (CESO) they clarified that “the investment plan must now include the integration of local products and a supplier development plan, although there are no minimum requirements for any of them. . Exemption from paying tariffs, statistical fees and other customs taxes is extended to suppliers of investment projects attached to imported merchandise or inputs.
3. Export collection. This point is contained in article 96. With the modifications, it was defined that the export charges of the project that joins the RIGI will be exempt from entering the exchange market in the following percentages: 20% after 2 years; 40% after 3 years; and 100% after 4 years. This not only includes currency exchange, but also “capital contributions, loans or services linked to the project that is the object of the approved investment plan.” For projects declared long-term strategic exports, the percentages will be different: 20% after one year; 40% after 2 years; 100% after 3 years.
4. Shares, quotas or social participations of the VPU. In this case, the Senate decided to modify article 205 so that the shares, quotas or social participations of the single project vehicles (VPU) – that is, the owners of a project that qualifies as a major investment in the included sectors – adhered to the RIGI can be used as collateral.
