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The 'cross crack' by the agro-industrial law

2023-03-25T09:53:50.514Z


A new project advances in Deputies with the impulse of doves of the ruling party and the opposition; loosen the hawks' fetters.


The Agroindustrial bill

rose from the ashes.

He had lost parliamentary status less than a month ago, and it seemed that new political times would have to wait, after the presidential elections.

But... politics moves based on interests, and the rhythm has to do with the power to add supporters. 

That is what was perceived this Wednesday in Congress at a

joint meeting of the Agriculture and Livestock committees of the Chamber of Deputies

, which once again debated a new project, with deeper changes and more direct application, with the impulse of the pro-government bloc and the explicit endorsement of opposition legislators.

In this sense,

the planets of two supposedly antagonistic sectors seem to align

, one from the ruling party and the other from the opposition, who share the identification as

“doves.

It is a wide space that reaches both sides of the traditional crack.

They are the ones who believe it is appropriate to take

steps forward, even if they are partial

.

They value what they can agree on, even if it does not fully satisfy them.

In this case,

the official supporters did not want to cede fiscal resources,

in the context of the economic crisis, but

they seem to have understood –at least momentarily- that incentives to the countryside are not “costs”

but an investment to generate more pesos and dollars.

The opponents who support the initiative assume that if they try to eliminate withholdings or the exchange gap, the possibility of other advances is lost.

On the other side are the

"hawks"

, an intransigent position, in which they also drink referents from the ruling party and the opposition, which configures a new

"cross crack"

that is expressed in many more issues, from insecurity to the economy, and which will be intensified at least until PASO (mechanism for defining inmates in each party).

Thus, the intention to advance in progressive changes, avoiding the

"paralyzing polarization"

, connects the intentions of the Morales, Larreta, among others, with sectors of the Frente de Todos that are more negotiating than La Cámpora.

The pro-government project bears the signature of deputy

Marcelo Casaretto

(FdT, Entre Ríos, president of the Industry Commission), and is accompanied by his block peers Carlos Ponce, Carlos Heller,

Germán Martínez (president of the bench)

and Carolina Yutrovic, among others.

On the part of Together for Change, the strongest promoter is

Ricardo Buryaile

, also an accountant like Casaretto, a radical from Formosa, president of the Agriculture Commission and former Minister of Agribusiness of the Nation between 2015 and 2017, who believes that "

the modifications are significant"

and sees a near horizon to reach the half sanction.

At the other extreme there are criteria, such as that of deputy

Pablo Torello

(PRO, Buenos Aires), who insist on going all-out for the elimination of withholdings.

On the Kirchner side, there are still positions that are reluctant to give air to the countryside, but the Minister of Economy,

Sergio Massa, has the permission of a storm pilot, even from Cristina Kirchner

, who despite her initial support months ago withdrew support from this project because they told him that "it would not benefit the producers but the big companies" but now he would have returned to the vision of the productive chain. 

The Tigrense feels every day the lack of the

20,000 million dollars that the drought has already evaporated

and, with an electoral pragmatism that he shares with CFK, argues that

in an electoral year it is convenient for them to at least relieve the sector that can contribute more dollars

.

Buryaile believes that if this 10-year deal

goes through ,

it would pave the way for seeking some tax break to offset the tax burden.

He is aware that

the k take withholdings as an almost non-negotiable flag,

but he is confident that if a path is opened with the doves of the ruling party,

some kind of effective help can emerge, at least in the climate emergency of these months

.

The initiative has the support of the 61 entities that make up the

Argentine Agroindustrial Council (CAA)

, which on March 1, the day after the project presented by Alberto Fernández, Cristina Kirchner and Julián Dominguez lost parliamentary status –in September 2021-announced a federal plan in this regard.

From the

Barbechando Foundation

, the NGO specialized in the parliamentary treatment of agro-industrial issues,

they recovered their optimism

.

“The second round of the Regime for the promotion of inclusive, sustainable and exporting federal agro-industrial development has arrived.

The ruling party provided broad support to the project and asked to speed up the times;

the opposition advanced its intention to support the proposal”,

reflected Florencia Ricchiuti, the executive director of Barbechando, who believes that it could “light up” a

consensus hitherto unexpected.

New "benefits and enhancements

"


Ricchiuti highlights "

5 benefits for producers"

1. Tax valuation of the

Wintering Treasury the same as that of breeding.

2.

Accelerated Amortization

of personal property, livestock, improvements and constructions in 1 or 2 years.

3. Refund of the

technical balance of VAT

in 3 fiscal periods for investments in fixed assets.

4.

Tax Credit Certificate (50%)

for the purchase of fertilizers, inputs, biologicals, autogamous controlled seeds, genetics/livestock health, certification of quality/safety/triple impact standards.

5.

New employment

: for new hires, 50% of pension contributions are deducted for at least 2 years.

For MIPyMES) the deduction will be 100%.

The improvements that the Barbechando Foundation highlights regarding the bill that was debated until February, are 9:

– Requirements:

Registration is eliminated and replaced by Digital Single Window

Term

: the regime is extended from 4 to 10 years, extendable – Incrementality: it is evaluated every 2 years -previously every 1-, without a baseline.

Accelerated amortization:

the amortization period is reduced to 2 years (Originally it was 3 and 4 installments);

it is extended to all investments -includes livestock and perennial plantations- and improvements are added such as wire fences, waterways, perforations, etc.

Treasury Valuation

: The minimum weight requirement for winter valuation is eliminated.

– New Employment

Promotion

: A chapter is incorporated with a 50% reduction in employer contributions for new jobs and up to 100% for MSMEs.

Tax Credit Certificate (financing):

A minimum budget is set – 0.15% of exports (MOA and PP) 80% must be allocated to MSMEs -Tranche 1-.

Tax Credit Certificate:

Requirements are simplified and a program for quality management systems and official certifications is added.

– Promotion of exports with added value:

Benefits are incorporated in registration fees and bonus for procedures for first exports.

Compensation and Stimulus Program for small producers:

The Executive Branch is entrusted with the extension of the term.

At the beginning of April, a plenary meeting would be convened

to rule on the commission and

weeks later,

a half sanction could be reached

.

There are about two months of “real” legislative activity left, before the lists of candidates are defined and the electoral campaign intensifies.

protest in april 


Meanwhile, in the midst of the

beginning of the soybean and corn harvest with very poor numbers (25 million tons of the oilseed and 36 million tons of the cereal

, according to the latest estimate of the Grain Exchange of Buenos Aires), the

Argentine Agrarian Federation (FAA) seeks to reach a consensus on a protest with the rest of the Liaison Table

.

They would hold a

demonstration in the City of Buenos Aires

, in the first fortnight of April, with various claims to the national government to deepen the aid to producers affected by the drought.

They will ask for a

removal of withholdings

and

exchange rate unification

.

The president of FAA,

Carlos Achetoni, trusts that next Wednesday, March 29, they will announce the date

on which the mobilization will take place, to the Casa Rosada, Congress and the Ministry of Economy.

Although the call is open to all who want to participate, Achetoni preferred not to predict the magnitude of the protest.

"We know about the situation that the producers are going through and we are not risking anything, because

we know that it is difficult for them to be able to join us en masse

, although that would be very good," he emphasized.

look too

Paraguay, unstoppable

Drought: the coarse harvest began with lower than average yields and production projections fall

Source: clarin

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