Entrepreneurs already support higher growth | S …

The meeting of the Board of Directors of the Argentine Industrial Union (UIA), left a photo that today represents the relationship of the business community with the government in the positive points and the strongest contrasts: There was unanimity on the principle that the economy will grow higher than indicated in the 2021 budget, but there were also significant complaints. for imported inputs to support this growth and for corporate income tax. In addition, in the last few hours, arguments have been added against the SIPRE price information system, which requires large companies to detail the volumes and values ​​that will be sold at wholesale and retail.

During the virtual meeting chaired by the head of the entity, Miguel Acevedo, the Minister of Productive Development, Matías, was invited to participate. Kulfas, and Industry Secretary Ariel Schale. As has happened with other managers at similar meetings. There, the issue of the “rebound” of the economy was discussed and there was a long discussion about the dollars available to pay for imports. This discussion, according to industry sources, is new after years of stagnation. This is what Acevedo describes as a conflict of growth, not a crisis.

“There is a greater reactivation, I don’t know if it will be 6 or 7, but things are moving, which is why we must guarantee access to inputs, ”said a businessman from the inside. To which the government replied that there was never a shortage of parts for the industry, given that it was the zero minute commitment of management. A few days ago, during a meeting with businessmen from the Council of the Americas, the head of the Chamber of Deputies, Sergio Massa, mentioned a growth of 7%. The next day, the Minister of the Economy, Martín Guzmán, said the same thing to foreign investors. For entrepreneurs, this rebound is likely “because there are sectors that sell more”.

Some have even argued that more dynamic activity was observed in consumption, the most pressing item but which could be the ceiling of the recovery in an economy with 8 pesos out of 10 explained by household spending. Daniel Funes from Rioja, head of the Coordinadora de Productores de Alimentos (Copal), told Página I12 that “when imports increase, we are not against the administration of trade, but we want to guarantee the supply. It can be more growth, but heterogeneous, it will not be uniform, it can be higher but unequal ”.

Price information is not convincing

“Lawyers see it, if it is for statistical purposes, it is not necessary for our sector because there are already maximum prices and care. If it’s for price control, we are already checkedIt is a very heavy additional bureaucratic burden, which is added to all the tax information, ”Funes told this newspaper about SIPRE which was formalized on Wednesday in the Official Journal. The initiative, which provides that large companies report sales volumes and prices to systematize an information system that whitewash the functioning of the market. Businessmen were upset that officials did not bring the matter up at the UIA meeting, given the level of trust that governs this bond.

In the next few hours there will be a Copal meeting where the problem will be analyzed, but they rule out that it will go beyond a complaint. Naturally, they will argue that they are against the sanctions in force for non-compliance with reports, based on the Consumer Protection Law.

“It’s premature, it will generate more bureaucracy, because of the invoicing amounts, this also includes SMEs and we are at a time when we have to think about growth, production and investment, and I do not do not think that this measure will generate it “, explained to this newspaper the businessman of the coffee shop. Martin Cabrales, leader of the UIA and Copal.

Earnings and investments

At the UIA, it was also time to go against corporate tax, which is being debated in Congress as a method of funding personal tax cuts. “We already have a sufficient tax burden, and this in the midst of a pandemic is going to be detrimental,” warned a metallurgical leader. In turn, Funes de Rioja said that “in the case of food there is already a 40 percent tax, 50 percent on drinks and we get 35 percent plus 7 for dividends. complicated“.

The project offers staggered aliquots based on the level of accumulated net profit. The first bond will pay 25 percent for a net profit of up to 1 million pesos: the second 30 for between 1,300,000 and up to 2,600,000; and a final step will pay the 35 plus the 7 for the dividends distributed.

The rule under debate has also generated that the Argentine Chamber of Commerce (CAC), will send a letter to Sergio Massa, one of the authors of the standard for natural persons. They specify that “if there are no corrections, the results of this project will be”, among other things, that “almost the entire business sector (to the extent that it manages to obtain profits) will be reached by aliquots close to 35% plus the withholding of 7 in the event of distribution of profits to its shareholders or associates ”. They also stressed that “the investment will be discouraged since the net profit that a project can produce will be reduced by the increase in the tax”.

The entity chaired by Mario Grinman also added that “Argentina will be at a disadvantage compared to other economies likely to receive investment (e.g. other Mercosur members), given that the rate chosen is higher than that in force in most capital-exporting countries, so the Argentine tax can only be partially calculated as a credit of tax ”.