The UIA presented its ten proposals to promote federal development

The Argentine Industrial Union (UIA) presented its ten points for a federal development. In the industrial entity noted that most of the state credits go to Buenos Aires and its area of ​​influence, while there are also logistical deficiencies that harm the interior, according to a work they developed.

The document contains 10 proposals regarding financing, tax burden, logistics, energy and procedures. In all cases, there is a recommendation to the national government and another to the provinces.

In financing, the UIA believes that regional distribution criteria should be incorporated into official programs with benefits to rates. There, the provinces have to provide “complementary” measures for each program or benefit. For example, they suggest a mechanism called “1 + 1 between Nation and Provinces”. In the same, the Ministry of Production and Labor should commit to disburse $ 1 for every $ 1 available to the province through provincial and / or private banks.

In tax matters, the UIA calls for a reversal of the “progressive suspension of the benefits of Decree 814/01 for the impulse to encourage employment in more remote areas.” This standard talks about the elimination of employer burdens in some areas. To the provinces, they will be asked to accelerate the reduction of “Gross Income until replacing it by another tool of easier liquidation and inspection”.

“Gross Income became the main source of revenue for the provinces, discounting the effect of inflation, revenue from this tax grew by 49% compared to 2004”, they highlight. “Some provinces promoted a Gross Income exemption for smaller industrial companies, the UIA observed it in Buenos Aires firms that invoice less than $ 78 million annually.

With respect to logistics, they suggest a railway plan with developments of logistic nodes in different areas, where “besides the railroad, other means of transport arrive and connect”. This initiative should be taken by the national Executive Power. The provinces could accompany with laws that allow the “binary and scalable”.

According to the industrial diagnosis, the use of trucks is the majority, but to transport cargo it is better to use trains or barges. The train fare, per kilometer traveled, is half that of trucks.

In terms of energy, they ask for a reduction of VAT to national tariffs, as well as other “local components” that companies pay on their bills. “The AFIP collected 93 billion pesos (11.9% of VAT collection) in 2017 for VAT from electricity and gas tariffs,” they say. This factor “increases” production costs and -in a low demand scenario- is a discouragement for investment.

Finally, the UIA proposes the “creation of a Council to monitor and advise permanently to the provinces in relation to the provincial adhesions to the laws sanctioned in the Congress of the Nation”. There they understand that the provinces must adhere to and regulate laws such as the “Buy Argentine Law and Labor Risk Security to improve productivity”.

Alexander Baker

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