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The Government provides dollars to import food, but has not yet lowered taxes

2024-03-17T23:26:16.811Z

Highlights: The Government provides dollars to import food, but has not yet lowered taxes. Banks must implement the regulations of the Central Bank. Local industries fear a flood of almost 3,000 products into the country. While the INDEC reported last week that inflation in February fell to 13.2% monthly (below what the market expected), the Government is concerned about the March data. The consulting firms estimate a slight acceleration that could bring the index to around 15% due to the inertia still present, the adjustments in services and the joint ventures.


Banks must implement the regulations of the Central Bank. Local industries fear a flood of almost 3,000 products


Embarked on a "cultural battle" against inflation, the Government took the first steps to

facilitate the imports of almost 3,000

basic basket products and reduced the period to access dollars.

The rule was made official on Thursday, but some banks

have doubts and there have still been no signs about the promised suspension of the collection of

additional VAT and Income Tax.

Since last week, the Minister of Economy, Luis Caputo, referred the discussion to his Secretary of Commerce, Pablo Lavigne.

The head of the collection entity, Florencia Mizrahi, also intervenes.

"This week it starts, but it depends on the AFIP machine," she said in an official dispatch.

"We are working with Commerce," said sources from another area.

The authorities

evaluate the fiscal cost of suspending

the tax advance due to its impact on collection, in the midst of the recession and the drop in turnover.

According to official data, income

fell 8% year-on-year in real terms in February,

despite the fact that the Government maintained the PAIS tax and increased the rate for goods and freight, a tax that should expire at the end of the year.

On the other hand, banks

must still adapt their systems to the changes ordered by the Central Bank

, by which official imports as of March 15 of goods from the defined basic basket will be able to access

the importing dollar, of almost $ 1,000 ( official + PAIS tax of 17.5%), within a period of 30 days

from the registration of customs entry.

The tap would open in April.

This represents a certain advantage for those who import food, drinks and cleaning, personal care and hygiene products, as well as medicines.

The thing is that, to access official dollars, the rest of the items must be done in

a staggered manner and in long terms (in four equal and consecutive parts, at 30, 60, 90 and 120 days),

which explains the scarce payments in some sectors.

The presidential spokesperson, Manuel Adorni, announced the opening of imports last week, after the failed conversations that Caputo had with mass consumption manufacturers to abandon 2x1 type promotions and lower prices on the shelves.

Since then, the minister made his claim public and tension with the companies increased.

As Clarín learned

,

CAME and other chambers requested a meeting with the economic team.

On Wednesday, Lavigne urgently received the head of the Coordinator of Food Products Industries (Copal), Daniel Funes de Rioja, and a group of executives, who expressed their concern about the

distortion that "indiscriminate opening" would generate and asked for more time.

However, Caputo again pointed out this Saturday against businessmen and discounts because "many people cannot or do not want to carry 2 units."

"

Everyone priced their products taking into account the predictions of the dollar of 2 thousand or more,"

he said, and insisted that, despite the fall in the dollar, the drop in sales prices "is not reflected in the statistics." .

Although the INDEC reported last week that inflation in February fell to 13.2% monthly (below what the market expected), the Government is

concerned about the March data

.

The consulting firms estimate a slight acceleration that could bring the index to around 15% due to the inertia still present, the adjustments in services (energy, transportation and prepaid) and the joint ventures.

Large food manufacturers believe that the conflict is due to the minister's lack of "understanding" about the dynamics of inflation.

Some even warn that the measure would encourage them to import finished products, instead of producing them in the country.

"Toto (for Caputo) does not understand the impact very well, he does not know commercial policy, he is a broker who has not managed companies in 20 years," shot one CEO.

For the head of CAME, Alfredo González, "the possibility of paying in 30 days and the deferral of VAT

works against SMEs that pay in 120 days for inputs and machinery

."

While the Argentine Federation of the Wood and Related Industries (FAIMA) warned that the measure, added to the increase in furniture imports in January and the drop in demand, could generate

"massive layoffs."

Source: clarin

All business articles on 2024-03-17

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