the vice president Cristina Fernández de Kirchner opened the special session at 2:28 p.m. in the Senate in which bills requested by the Minister of Economy, Sergio Massa, which seek to promote the automotive and biotechnology industry, will be debated.
With 42 senators present from the ruling Frente de Todos (FdT) and the opposition interbloc Together for Change (JxC), the Vice President gave rise to in the first place to the treatment of appointments and questions of privilege before the debate on the bills.
Photos: Osvaldo Fanton
investment promotion
The project that establishes investment promotion measures in the automotive industry includes tax benefits such as exemption from export rights until 2031 and declares auto parts production a strategic sector.
The norm is one of those demanded by the current Minister of Economy, Sergio Massa, and that, when the official was president of the Lower House, he promoted together with the opposition deputy from Buenos Aires, Cristian Ritondo.
The “Regime for the Promotion of Investments in the Automotive Industry – Autoparts and its value chain” establishes a set of incentive measures 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.
In addition, benefits are contemplated 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 , from five to three years.
The norm, in turn, create two new entities: a program to promote new investments and the Mobility Institute.
The project for the promotion, development and production of modern biotechnology and nanotechnology, also requested by Massa, contemplates extending until 2034 the validity of the tax benefits regime and its scope for nanotechnology activities.
The initiative foresees 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.
