The bill to tax the unexpected income of companies that register extraordinary profits derived from the global impact of the war in Ukraine presented by President Alberto Fernández will be sent to Congress in the next few hours and the ruling party trusts that it will begin to be debated the next week in commission.
The initiative was analyzed at the Government House by the chief of staff, Juan Manzur, with the president of the block of deputies of the Front of All, Germán Martínezwith whom he reviewed the legislative agenda and defined joint lines of action.
In that framework, Martínez announced that the bill will begin to be debated in committee starting next week.
“Once the project enters, we will be in a position next week to schedule a treatment,” said Martínez when asked about parliamentary times.
Likewise, from the Ministry of Economy assured that the initiative will be presented in the next few hours in Congress.
The initiative
The bill provides for the creation of an excess rate of 15% of the Income Tax on Capital Companies applicable to fiscal year 2022 for companies that register a Net Taxable Income or Accounting Income of more than $1,000 million.
The rate will consider the Net Taxable Income that has grown in real terms and that meets a profit margin (accounting profit on income) in 2022 greater than 10%, or an increase in the profit margin in relation to 2021 of at least 20 %.
The objective of the project is to reach the large companies that increased their profit margins due to the collateral effects caused by the war in economic matters.“something transversal, unlike other countries,” they assured.
From Economy they estimated that with current international prices it is possible that around 350 companies are within the parameters contemplated in the initiative and, making a “conservative” calculation, they considered that the collection for this concept would be around US $ 1,000 million.
From the Palacio de Hacienda they highlighted the “redistributive” motivation of the initiative, with the objective of seeking equity between the different sectors of society in the face of the external shock that generates extraordinary profits.
Participating in a meeting organized by the Argentine Business Association (AEA), the Minister of Economy, Martín Guzmán, defended the bill and argued that “there is no progress if growth is not shared” and that “this government is partner of those who bet on work and production”.
“The unexpected income is not a new tax; it is an over-tax in a year of war that has generated a great distributive problem throughout the world; the State has a responsibility in the construction of rules of the game for a society that progresses; and there is no progress if growth is not shared,” he added.
Guzmán pointed out that as a result of the war between Russia and Ukraine “there has been a shock that has generated income for certain sectors that has nothing to do with greater investment but is the product of the international shock, which at the same time generates problems to millions of people.”
After the meeting at the Casa Rosada, Manzur considered the project “appropriate” and said that “it is part of everything that is being experienced worldwide after Russia’s invasion of Ukraine”.
“That is why the initiative is not an isolated issue, not only for Argentina, but rather the most advanced countries, such as Great Britain and Italy, are going in the same direction,” the Cabinet chief concluded.
For his part, the president of the Budget and Finance Commission of the Chamber of Deputies, Carlos Heller, maintained that the bill “is for a few companies” and considered it “very difficult to oppose the income generated distributed more equitably.
In radio statements, Heller assured that “the pandemic plus the war have generated in the world, not only in Argentina, an aggravation of the already serious pre-existing situation of accumulation in the distribution of wealth.”
“This tax is on part of this increase; it seems very difficult to oppose it because it targets a very small number of companies,” Heller said.by advocating that the income generated “be distributed more equitably.”
Another legislator, national deputy Daniel Arroyo (Frente de Todos) argued today that “the project to tax unexpected income is purely fair and ethical” and is needed to “compensate many people who have a hard time,” while He expressed confidence that “at least part of the opposition can support” the initiative.
“When we talk about a group of companies we talk about those that have had a net profit of over a billion pesos, nobody thinks of taxes for the corner merchant,” Arroyo explained in dialogue with FM La Patriada and clarified that it would reach to “exceptional cases, less than 3%”.
According to Arroyo, “it is purely fair that part of that extraordinary profit goes to compensate many people who have a hard time”; That is why he pointed out that he hopes “that the opposition can accompany it and it ends up becoming law in the coming weeks.”
From the opposition, Buenos Aires senator Martín Lousteau criticized the ruling party’s project by assuring that “it is not rigorous” and “only intends to collect.”
In statements to radio Mitre, Lousteu anticipated in this way that he will not accompany the initiative promoted by the Government.
“The project is not rigorous, it does not have any sincere comparison with what the world is doing. It is only intended to collect. The question is to collect for what, “said the legislator.
