LARGE INVESTMENT INCENTIVE REGIME (RIGI) AND PROTECTION OF NATIONAL SMEs

From the Association of Metallurgical Industrialists of Rosario we warn about the potential disadvantage towards the national industry that is intended to be included in the new Bases Law.

Rosario, April 30, 2024.- In our country the “Bases Law” project is being debated again. One of the proposals included there is called “Incentive Regime for Large Investments” (RIGI).

With the pretext of stimulating the completion of projects and works in productive and service sectors with the contribution of local and external capital, this regime is included. The RIGI contemplates tax, customs and exchange benefits for investments that exceed 200 million dollars.

Considering the figure, the RIGI is tailored to large corporations, whether international or national. However, in the prThe bill does not consider incentives for small and medium-sized businesses and industries that make up the majority of the Argentine productive network.

For this reason, from AIM Rosario, in accordance with ADIMRA (the Association of Metallurgical Industrialists of the Argentine Republic) we warn that this RIGI implies anunfair competition with the pre-existing national industry. It implies a stimulus only to large and few players to the detriment of our local and regional reality.

Just as a general comparison, the tax burden of an Argentine SME vs. a company that was covered by the RIG:

We are in favor of encouraging investments in the productive sector, but with equal opportunities.

In a national administration that proposes ending privileges for caste, we consider that it would becute; it is more beneficial for the Argentine productive universe to lower the general tax pressure instead of granting new privileges to a few companies.

That is why we call on national legislators to make the law equitable for all sectors and all sizes of companies.

AIM Rosario

Spain 744, Rosario

aim@aim-rosario.org.ar

www.aim-rosario.org.ar