July 26th, 2024
1. 136th edition of Expo Rural
The 136th International Livestock, Agriculture and Industry Exhibition, Expo Rural 2024, took place this week. Within this framework, several representatives of the public sector visited the exhibition during the days of the event. Among them, Luis Caputo, Minister of Economy of the Nation, held a meeting with representatives of the Mesa de Enlace. This table is formed by the presidents of the Argentine Agrarian Federation (FAA), Coninagro, Argentine Rural Confederations and the Argentine Rural Society. During the meeting they discussed the situation of the sector and the policies of the National Government to promote exports and production and to work on measures that favor the agricultural sector. On the other hand, Vice-President Victoria Villarruel was present after the controversy that arose from her publication in defense of the Argentine national team, with strong statements against France. In fact, she avoided apologizing for her remarks about that European country and added: “It will be another opportunity to talk about that issue”. Lastly, the President of the Nation, Javier Milei, is expected to be present at the opening ceremony on Sunday, where he would give a speech in which he is expected to ratify his objective of reducing export duties on certain agricultural products.
Argentina.gob.ar: Luis Caputo visitó la Expo Rural y se reunió con la Mesa de Enlace
La Nación: Villarruel habló de su relación con Milei y evitó pedirle disculpas a Francia
2. The Central Bank took measures to loosen exchange rate restrictions
Argentina’s Central Bank brought forward its weekly meeting to make key decisions on the future of the exchange rate hedge, in the context of Luis Caputo and Santiago Bausili’s trip to Brazil to meet with the IMF. One of the main decisions was to reverse a rule that limited access to the financial dollar to those who received energy subsidies or social assistance during the pandemic. Now, these beneficiaries will be able to buy and sell securities in foreign currency, including the MEP dollar and the cash with liquidity dollar. The measure is part of “phase two” of the Government’s economic program, which seeks to facilitate access to mortgage and pledge credit, allowing more people to buy dollars to finance properties and vehicles. In addition, the Central Bank announced other relaxations, such as reducing from 90 to 60 days the terms for importers to access the official market, improving the accumulation of international reserves and normalizing foreign trade.
3. Minister Caputo meets with supermarket representatives
After his visit to ExpoRural, the Minister of Economy, Luis Caputo, held a meeting at the Treasury Palace with representatives of supermarkets to exchange proposals related to the sector, discuss the evolution of the macroeconomy and the National Government’s measures to lower inflation. During the meeting, the Minister highlighted that at present there are no macroeconomic reasons for inflation, and he emphasized the importance of continuing to build trust in the economic model. Furthermore, Caputo stated that the monetary measures to put an end to the emission and the fiscal anchor will allow inflation to continue decreasing. In this line, the Minister of Economy explained that people will not validate price increases. Likewise, Caputo and the businessmen agreed on the importance of lowering the country tax and that the tax reduction will be transferred to prices. In this sense, the Minister reinforced that the National Government aims to lower taxes and inflation.
La Nación: Para supermercados: Luis Caputo dijo que la inflación será 0% antes de fin de año
4. The national government regulates the new income tax
Through Decree 652/2024, the National Government regulated the modifications to the income tax approved within the Tax Package of the Basic Law. The regulation maintains the lowering of the floor to AR$ 1,800,000 for singles (about AR$ 1,500,000 net) and AR$ 2,200,000 for people with two children (AR$ 1,950,000 net) voted by the Congress. These new values will take effect in July, with salaries to be collected in August. Previously, the non-taxable minimum was 15 minimum salaries, equivalent to AR$ 2,340,000 until June and AR$ 3,500,000 as from July. The non-taxable minimum will be updated on a quarterly basis during this year, in September, and then on a semi-annual basis based on the CPI.
Ámbito Financiero: Gobierno reglamentó los cambios en el Impuesto a las Ganancias: quiénes tendrán que pagar desde agosto
5. Axel Kicillof to promote his own RIGI project for the Province of Buenos Aires
Axel Kicillof, Governor of Buenos Aires, will present next week in the Buenos Aires Legislature his project of Provincial Regime for the Promotion of Strategic Investments, the tool with which he will seek to adhere, under his own terms, to Javier Milei’s Incentive Regime for Large Investments (RIGI), which he resisted so much. Also, the lever with which it seeks to prevent a multimillionaire investment from going to another national jurisdiction: the LNG plant with which YPF and Petronas, the Malaysian multinational, seek to export gas from Vaca Muerta to the world. The provincial promotion regime, with tax stability and improvements in the tax treatment, is the solution found by the Governor after opposing the Bases and Military Law against the RIGI approved by Congress, with the understanding that it “gives away money” to investors. This project has the support of the former Vice President, Cristina Fernández de Kirchner.