American multinational companies evaluated as “insufficient” the changes introduced in the Base Law in central chapters such as labor and the investment regime. Faithful to an ideology where only the defense of its own interests prevails, the United States Chamber of Commerce in Argentina (AmCham) asked to go deeper with the reforms and criticized the rejection of the Fiscal Package by the Senate. Bluntly. The entity directly called on the deputies to review their positions.
The answer was immediate. Oscar Parrilli, senator from Unión por la Patria, claimed that “what AmCham should do is keep its mouth shut and the Government should call their attention, because a foreign business chamber cannot interfere with the country’s internal affairs,” in dialogue with AM 750.
In a statement issued this Wednesday, AmCham evaluated the Senate’s sanction as “political support” for the Executive Branch, “thus allowing progress in the transformation of Argentina into a viable country.” But they chose to go deeper by considering that fundamental changes in the main macroeconomic variables must still be made and at the same time “have the support of the main actors in the country (Congress, academics, union members, businessmen, etc.).”
About labor chapter approved in the Bases Lawthe business entity warned that “the final wording does not yet generate the minimum conditions necessary for a substantial increase in employabilitynor for the significant reduction of informality.” The businessmen were forceful although they praised advances such as “the modifications in the treatment of special agreements for commercial travelers, and the elimination of fines or infractions for those who have not properly regularized their employees”.
Regarding the Large Investment Incentive Regime (RIGI), the 717 companies grouped in AmCham considered that “the limited list of industries covered (forest industry, infrastructure, mining, technology, tourism, steel, oil and gas) is limiting and unnecessary”. The sectoral limitation of the RIGI sought the protection of the leadership of large agroindustrial companies that already operate in the country, with a lobby also successful.
AmCham did not refrain from objecting to the reduction in the number of companies to be privatized, regarding which they stated that the “final version of the project significantly restricts the ability of the Executive to carry out a comprehensive review of public companies. “Many of these companies have been singled out for their loss-making nature, their inefficient management or for pursuing objectives that are inadequate or unjustifiable.”
Instead of going about their business, the Chamber was concerned about the Argentine Government’s fiscal surplus. “In the case of the rejection of the reinstatement of the Income Tax, the fiscal resources of the State, both provincial and national, are cut, which are essential to achieve the objective of fiscal surplus,” they warned regarding the Fiscal Package and bluntly said: “We ask the deputies to insist on the original text with half sanction”.
“As for the Personal Property Tax, the current wording affects the middle class, which imposes an almost confiscatory nature,” they were also clear about this tax. “We ask the deputies to include the proposed changes, such as advance payment over five years, the progressive reduction of rates, the update of the non-taxable minimum and the value of the deductible home, and the reduction of the rate for compliant taxpayers. ”, they raised again.
About him increasing the mining royalty cap from 3 to 5 percent for new projects, pointed out that “its application generates a strong loss of competitiveness for relevant future mining explorations, contrasting with the benefit of implementing the RIGI” and again appealed to the reasonableness of the deputies. AmCham brings together companies that operate in 42 areas of economic activity and contribute 24 percent of the local GDP according to its estimates.
They also mentioned Article 111, which was eliminated from the project with half a sanction, which enabled the Executive to increase public resources by up to 2 percent of GDP through the elimination or modification of exemptions, tax expenses and tax benefits. This tool is crucial for the sustainability of the fiscal surplus, they evaluated.
They also stressed that “the scope of administrative deregulation should be much broader to substantially improve the functioning of public organizations and make them efficient.” Metaphorically this suggests that the liberal chainsaw expand its size. Finally, they criticized the restitution of the pension moratorium and spoke in favor of Congress discussing a broad reform of the retirement system.
