With consensus on almost the entire text, expectations are growing in Casa Rosada for the approval of the ambitious package of economic and fiscal measures.
The Chamber of Deputies is preparing to approve both the law Bases as the Tax Reform presented by the national government, with the only question of the recomposition of the fourth category of the income tax. After an extensive list of speakers, and with the presence of Karina Milei, Guillermo Francos and Victoria Villarruel in the venue, after midnight the result of the first legislative project that will be sanctioned during the administration of Javier Milei.
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The definition of the law Bases -which replicates the text approved in the Senate– will be done with a general vote, while the initiative of “Palliative and Relevant Fiscal Measures” will be segmented into four votes: first the tax expenditure reform, then the Income taxsubsequently the rate on Personal property and finally the rest of the article. The positions of the Patagonian deputies and the most reticent sector of the Radical Civic Union In these last sections, they are the only ones that can prevent a total legislative victory of the Government.
One of the recurrences during the debate was the possibility of judicialization of what was approved in the tax reform, which recovered the text of Deputies approved in April, ignoring the Senate’s rejections of Profits and Personal Assets. “Let us be clear that this is going to be the input, unfortunately, for those judges who are going to receive the hundreds of thousands of lawsuitswhich are not going to come from the deputies but from the almost 800,000 workers whose tax situation was changed in nine months,” he said. Vanesa Siley (Union for the Homeland).
German Martinez Fernando Iglesias Chamber of Deputies
Germán Martínez (Union for the Homeland) with Fernando Iglesias (PRO).
Ignacio Petunchi
In contrast, the ruling party stressed the stability guaranteed by this legislation. Santiago Santurio (Freedom Moves Forward) He insisted that “it is necessary to have the instruments, the means and the agreements to provide legal security and to ensure that the course is sustained over time. We understand that for six months – without any law – the macroeconomic indices have shown that the path is correct.” “We must tying one’s hands before increasing public spending and dishonor the sacrifice of millions of Argentines. Let’s make it worth it, let’s keep moving forward, let’s not tempt ourselves with easy solutions, let’s maintain balance and better distribute the cost of this process,” he considered in turn. Silvia Lospenato (PRO).
One of the legislators who will support the law in general but will have partial dissents, Agustín Domingo (Federal Innovation)recalled that “beyond my position as rejection of the Income Tax like many Patagonian deputies because we do not agree that the different cost of living that we have has not been considered, we have no doubt about the the power that we have as the Chamber of origin to insist on the half sanction of the changes that were introduced into this fiscal package in the Senate.”
Although your bloc will vote in favor, Maximiliano Ferraro (Civic Coalition)pointed out that “I hope that the tools that we are giving to the President and the Government today are used with prudence, balance, moderation and avoiding the cold and aseptic discourse that in the name of freedom attempts to build a new story from a utilitarian visionwith a misunderstood sense of merit and where polarization deepens.”
We make Federal Coalition UCR Deputies Pichetto
Deputies of the Let’s Make the Federal Coalition and the Radical Civic Union.
Ignacio Petunchi
Bases Law: the most important points to be approved
Among the nine chapters of the law Basesand then after the elimination of the pension reformthe 238 articles of the approved legislation include:
- Exceptional powers for the President of the Nation: public emergency in administrative, economic, financial and energy matters for a period of one year.
- Large Investment Incentive Regime (RIGI): tax scheme that establishes incentives for attracting foreign productive funds (of at least US$ 200 million) for 30 years for the forestry, tourism, infrastructure, mining, technology, steel, energy, oil and gas sectors. They have export duty exemptions starting in the third year. The Senate established that each province can define its adherence to the regime and a 20% quota for purchases from local suppliers “as long as the offer is available and in market conditions in terms of price and quality.”
- Labour reform: extension of the trial period to six months for companies with more than 100 workers, eight months for companies with six to 100 workers and one year in companies with up to five workers. Unions will continue to collect dues from workers even if they are not members.
- Privatizations: The state companies ENARSA, Intercargo, AySA, Belgrano Cargas, Corredores Viales and SOFSE are established as susceptible to privatization.
Victoria Villarruel Deputies Law Bases.jpeg
Vice President Victoria Villarruel and libertarian senator Esteban Bartolomé Abdala in the House of Representatives, awaiting the vote on the Ley Bases.
Mariano Fuchila
- Modification of the hydrocarbon law: Deregulation mechanisms are established to prioritize the maximization of production for export and income, modifying the paradigm that focused on supplying the domestic market.
- Public work: The Executive has the power to renegotiate or terminate public works contracts or the provision of goods and services, with the exception of those that have an 80% degree of execution or have international financing.
- Tobacco tax reform: The tax on cigarettes is increased from 70% to 73% and Tabacalera Sarandí is included.
