The bill that promotes investments in the automotive industry and that declares the auto parts sector strategic received the support of all the parliamentary blocs that signed the opinion in a plenary session of commissions of the Chamber of Deputies, with which the initiative will be sanctioned with ample consensus in the special session that the Front of All will call for next week.
The president of the Frente de Todos bloc, Germán Martínez, assured that the ruling party will seek to convene a special session for next Tuesday to debate, among other issues, the project that promotes investments in the automotive industry and that declares the sector “strategic.” autoparts, the Buy Argentine law and the biotechnology law.
The opinion signed in the plenary session of the Industry and Budget commissions – chaired by Marcelo Caseretto and Carlos Heller (FDT) – and which will be debated in the session room, was supported by 47 legislators from the Frente de Todos, the Federal Interbloc, the Interbloc of United Provinces, and Together for Changes, which did so with partial dissidence.
?? AUTOMOTIVE LAW. Thursday 6/30 at 12 noon. I convened the Industry and Budget Plenary to issue an opinion. We listened to 7 officials, and 35 guests from automakers, auto parts manufacturers and unions. Investment and job sources for Argentines are promoted. pic.twitter.com/QQH6qbwqbk
– Marcelo Casaretto (@mpcasaretto) June 29, 2022
The project declares the autoparts sector as a strategic industry, while offering tax benefits to all links in the production chain for new investments that generate higher performance, exports and integration of local components.
Measures
The incentive measures are aimed at new investment projects that ensure greater production, exports and employment in terminals and auto parts companies, in order to add value from industrial processes.
The office provides for the implementation of tax benefits for new investments such as the early return of VAT, amortization in Profits and exemption from the payment of export duties until 2031.
The project contemplates benefits for automotive investmentssuch as the early return of the Value Added Tax (VAT), since it establishes that the return term will be reduced from six to three years and in the case of the amortization of capital goods it is reduced from five to three years.
These measures seek to offset the financial cost of investments, considered high amounts.
Another key point for the promotion of the activity is the exemption of import duties until 2031 to support those settlement projects linked to exports.
At the beginning of the meeting, Casaretto had announced that some of the proposals made by the opposition will be added and others will be evaluated until the session promoted by the ruling party is held, where a package of economic projects will be analyzed.
Later he announced that “on the recommendation of the Ministry of Productive Development and Economy of the Nation, Article 12 was modified in relation to the technical wording of the VAT issue”
The meeting was attended by the Secretary of Tax Policy, Roberto Arias, and the Undersecretary of Industry, Julieta Loustau.
In the first section of the meeting, which was jointly chaired by Casaretto and Heller, the radical deputies Víctor Romero and Alejandro Cacace They anticipated that they will accompany the project prepared by the Executive Power.
In this sense, Romero said that “dialogues are being carried out with the vision of understanding that this project contributes to investment, to generating employment, to giving it added value” and assured that for this reason he will “accompany this project, but with dissent on some articles.
Cacace proposed that the zero export right be maintained in those “incremental exports that expire at the end of the year” and at this point, Arias indicated his agreement with the proposal made by the legislator of Radical Evolution.
For his part, the deputy of Federal Córdoba, Carlos Gutiérrez, referred to the article in which an enumeration of the impulse of the new engines is made and electric hybrids, gas, etc. are mentioned. so he took it for granted that “biofuels are included in that definition.”
In turn, the deputy of the FDT Victoria Tolosa Paz, celebrated “the consensus achieved among the political forces that is what Argentina needs” and pointed out that “the modifications of the opposition have been taken.”
He also pointed out that this year “there will be a production close to 530,000 units and the growing national component, and that is very good to carry out a substitution process that improves the trade balance of auto parts, light and heavy vehicles.”
The call for this meeting was made after officials, trade unionists and businessmen participated in Congress on Tuesday in an informative meeting with legislators from both commissions.
Through the initiative, the Regime for the Promotion of the Automotive-Autoparts Industry and its Value Chain is created, the Program for the Promotion of New Investments and the Mobility Institute that divides the waters between the ruling party and the opposition.
This institute aims to design policies and will have the participation of business chambers, unions, the National Institute of Industrial Technology (INTI) and the State, and will have an Advisory Council.
