The Chamber of Deputies will debate this Tuesday, in a special session requested by the Front of All, the promotion project of investments in the automotive industry that declares auto parts production as a strategic sectorwhich will be approved with a high level of support since it was endorsed by all political forces.
In addition, the legislative plenary session will deal with an initiative promoted by the national government that extends until 2034 the validity of the tax benefits regime and expands its scope to activities that incorporate nanotechnology, which was also agreed between the ruling party and Together for Change.
The session will have a special framework because the discussion will take place after the resignation of the Minister of Economy, Martín Guzmánwhose economic team defended this proposal last week in the plenary session of the Industry and Budget and Treasury committees.
The ruling party decided last Friday to promote a session for Tuesday, July 5 at 13, which includes issues agreed between the FDT, JXC, the Federal interblocks and the United Provinces, which guarantees its sanction due to the extreme parity that exists in this legislative body.
In this way, the Frente de Todos -led by Germán Martínez from Santa Fe- decided to postpone the debate on other initiatives such as the creation of a National Fund for the Cancellation of the Debt with the IMF with money that had fled abroad, and the reform of the Rental Law, which divides the waters between the ruling party and the opposition.
The session, scheduled for 1:00 p.m., will first discuss -after the tributes and questions of privilege- the promotion of investments in the automotive industry that offers tax benefits to all links in the production chain for new investments that generate higher yields, exports and integration of local components
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 project contemplates benefits for automotive investments, such 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.
The president of the Industry Commission, Marcelo Casarettopointed out that Tuesday’s session “is going to be very important because there is an initiative of special interest that is the investments in the automotive sector that we have been working on for several months and finally we got the unanimous opinion with some partial dissidences”
“Basically, the aim is to provide incentives and the thirteen automotive terminals have investment projects, so there are three incentives: accelerated amortization in Profits, the return of technical VAT, and a zero tariff on the right to export that will benefit not only the automotive companies but also the 600 thousand autoparts”, he added.
He added that “It is an excellent initiative to generate investments, jobs and exports.”
“It is going to be very important because there is an initiative of special interest that is investments in the automotive sector”Marcelo Casaretto
The secretary of the Budget Commission, Víctor Hugo Romero (UCR-JXC), pointed out that this political force will “accompany in general with some dissent because it includes benefits for new investment projects related to the early return of the balance in favor of VAT, allows an amortization and a zero tariff for exports” .
He said that this project is “a complement to the law voted in 2016 referring to the regime and strengthening of auto parts, which includes an electronic transferable fiscal credit voucher for the payment of taxes” and pointed out that the “current difficulties with the restrictions on exports affect this sector, however this project will generate employment and increase the national component and that is good for improving the trade balance generated by this sector”.
Another point to discuss on the agenda
Another of the projects that will seek to sanction is the one referring to the Promotion and Development and Production of Modern Biotechnology and Nanotechnologywhich also garnered wide support in the Industry and Science commissions, led by the radical Facundo Manes.
The initiative plans to extend until 2034 the validity of the tax benefits regime and extends its scope to activities that incorporate nanotechnology.
The initiative contemplates that those who access the promotion regime will be able to obtain benefits of accelerated amortization of Income Tax in one installment, early return of VAT and the granting of a tax credit bonus corresponding to 50% of the expenses paid for hiring of research and development (R&D) services with institutions of the National Public System of Science, Technology and Innovation.
Another key point is that the enforcement authority will be the Ministry of Productive Development.or since it will be in charge of approving the projects that must comply with the objectives of the law of the substantial improvement of production processes since it understands as substantial what it entails innovation content susceptible of industrial application, economic and social impact.
