The Buenos Aires Legislature will end the reduction of Gross Income

The Buenos Aires ruling party formalized this Thursday in the Legislature the announcement made by the head of Government, Horacio Rodríguez Larreta, about the reduction of the rates of the Gross Income Tax in the City of Buenos Aires in sectors considered “key” for the generation of work.

The measure, which It will come into effect from July 1. it added 36 positive votes from the legislators of Vamos Juntos, UCR-Evolución, Republicanos Unidos and La Libertad Avanza; and 21 against the Frente de Todos (FDT) and the Frente de Izquierda.

At the end of May, when announcing the initiative, the head of government said that the measure implies a drop in the rate of Gross Income from the current 1.5% to 1% for the manufacturing industry, which includes Food and Beverages, Clothing and Footwear, Metallurgy and Iron and Steel, and Home Appliances, among others.

The City insists on co-participation before the Court

It also includes a reduction from 2.5% to 2% for the construction sector and the complete elimination of the 0.75% rate that the primary sector has, within which Livestock, Agriculture, Fishing and Hydrocarbon Extraction stand out.

However, the opposition arch detected that the continuity of the changes approved in the Legislature will be subject to the Judgment issued by the Supreme Court of Justice of the Nation against the City’s claim for the redirection of co-participating funds.

Who and why opposed the drop in Gross Income in CABA?

In this regard, the FDT legislator, Claudia Neira, said that “this is a conditional project because it establishes that everything will be without effect if there is a contrary ruling from the Court to the City.”

Franco Vitali, also from the FDT, questioned “the lowering of taxes for developed companies” and requested, instead, a reduction “That directly helps people, like the ABL tribute that is paid every month.”

“They want to campaign saying that they are going to lower taxes,” said opposition deputy Matías Barroevateña, adding that “Encouraging construction stands up to the neighbors who ask that this extractivist model in the City be stopped.”

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Meanwhile, Gabriel Solano, from the Left Front, justified his vote against by pointing out that he does not share “neither the guidelines nor the results that a tax reduction will have for the business sectors, among them that of construction”.

For his part, the pro-government legislator and president of the Budget Committee, Claudio Romero, said that during the years of Rodríguez Larreta’s management “nothing was improvised” and specified that the Executive “is bringing the rates to what was proposed in 2017 ”.

Lucio Lapeña, from UCR-Evolución, supported what was approved by indicating that “There will be no progress if we do not begin to solve the serious problem we have for job creation.”

LDG/LM/ED