Last week, the Chamber of Senators unanimously approved a communication document issued by the Senate Transportation Commission and carried out at the initiative of the Front-Amplista senators Daniel Caggiani, Charles Carrera and Mario Bergara. In this, the Executive Power is requested to take measures in order to preserve the viability of the national flag transport companies, as well as the associated jobs.
In this sense, the minute asks the Executive Power to establish a 0% VAT rate that taxes the national section of import freight for national flag transport companies that perform this service.
It is also requested that the freight payments made by the transport companies of the region in the country cannot be collected in cash but rather be made through bank transfers.
This measure, as transmitted by the Chamber of International Land Transportation of Uruguay (CATIDU) to the senators of the Transportation Commission, would prevent the dollars collected in Uruguay from being sold on the Argentine black market and obtaining a significant return that allows competition unfair.
These asymmetries, as explained by Senator Caggiani in his statement of reasons, have caused Uruguay to lower its competitiveness in recent years, mainly with Argentina, due to the difference in the exchange rate, which has led the country to lose participation important in the industry.
The objective of the request is that Uruguayan cargo transport can be maintained “which is practically the only national flag warehouse that exists in our country.”
“For Uruguay, in terms of logistical capacity, it is very important to maintain national flag transport,” said the senator, adding that the health crisis and exchange differences “have caused Uruguay to lose part of the percentage of cargo that it carried to other countries”.
While in the past Uruguayan transport carried 90% of the cargo to Paraguay, today it carries only 2%. In the case of Argentina, there was a 50% relationship, while today 90% of logistics is done with Argentine cargo transport, something similar to what happens with Brazil.
“CATIDU’s situation is very pressing and it is important to be able to advance in some measures that can improve its competitiveness and its costs,” said Caggiani.
The requests also include that, as provided for in article 35 of Law 19,210, which was modified with the Law of Urgent Consideration, the Executive Power restricts the use of cash for this commercial activity considering the risks that the use of this means of payment has for the sector.