The Ministry of Economy announced tonight that it had sent a bill to Congress to boost savings and investment in pesos through a specific incentive: exemptions to income and personal property taxes.
The idea of the portfolio led by the minister Martin Guzman is to complement this project with another, which will be sent in the next few days, where it is promoted promptly investments in the construction sector and real estate developments, in keeping with the claims that this sector of the economy has been raising for a long time.
The main points of the project sent to Parliament are these:
– Exemptions in income tax and on Personal Assets are extended for financial investment assets in national currency with the aim of promoting savings in national currency and developing the capital and credit market-
– Exemption from Income tax of for interest on deposits in weights with adjustment clause (for example, fixed terms UVAs) and the return on placements in instruments issued in national currency designed to encourage productive investment.
– Exemption in Personal property for the following instruments: Negotiable obligations issued by Argentine companies; Instruments issued in national currency intended for productive investment; Participation in mutual funds and financial trusts that invest mainly in exempt assets (75%).
At the same time, what was called a “Anti-circumvention clause”, that is, it determines a minimum dwell time of the assets in the patrimony to access the exemptions of Personal Property (75% of the number of days per year).
The economic portfolio is convinced that the deep confidence crisis that today dominates businessmen and consumers can be solved by encouraging savings in national currency, just what businessmen, investors and savers are repudiating by shedding the weight, either by consuming goods and services or by trying to convert them into dollars.
This explains, by case, the skyrocketing of alternative dollars, legal or not. In a market without official regulations, people today are willing to pay between 155 and 178 pesos for a ticket that can be bought in the official market -the one that can- at 80 pesos. Or with a quota of 200 dollars per month, and with taxes included, at 135 pesos.
Guzmán spoke this Friday of facilitating operations under the “cash settlement” modality, a market in which companies and investors that have pesos and want to transform them into dollars but deposited outside the country operate mainly. That market began to overheat a month ago, due to a Central Bank regulation that, it is said, Economy would be willing to disarm it. The market awaits these announcements, which have not appeared for now.