Argentina
The Senate Debates Fiscal Innocence, Biofuels and Transfers of Powers to CABA
The upper chamber began a session with an agenda agreed upon by the ruling party and allied blocs. The reform of the Central Bank’s Organic Charter was postponed until next week due to differences over the selection of directors.
The Senate is meeting this Thursday from 11 a.m. to consider the final approval of the Fiscal Innocence bill, the biofuels reform, the transfer of powers to the City of Buenos Aires and the approval of judicial nominations.
According to ElDiarioAR, the ruling party reached an agreement with allied blocs to authorize the session after accepting the inclusion of the biofuels bill. Under that same understanding, it was decided to postpone until next week the debate on the reform of the Central Bank’s Organic Charter and an initiative on the Voluntary Carbon Market.
Patricia Bullrich, president of the La Libertad Avanza bloc, explained that the discussion on the Central Bank was delayed by a week because “there is a difference over the selection of the directors,” according to ElDiarioAR.
The Fiscal Innocence bill seeks to encourage the entry into the financial system of funds that remain outside the formal circuit. The initiative removes restrictions for entering the simplified Income Tax regime and redefines what will be considered a “significant discrepancy” so that the Tax and Customs Control Agency can challenge a simplified declaration. That criterion would be triggered when the difference implies an increase in the tax determined or a reduction in losses of at least 15% compared with what was declared.
Crónica added that the proposal already approved in the Chamber of Deputies also eliminates annual income and asset caps to access the simplified regime, cuts fines by 25% for individuals and SMEs that join, and excludes public officials who hold or have held office in the five years prior to joining from the benefits. That outlet also noted that it sets a floor of 5 million pesos for the “significant discrepancy.”
On biofuels, the bill provides for raising the mandatory ethanol blend from 12% to 15%. Regarding biodiesel, ElDiarioAR reported that the initiative raises it from 7% to 10%, while Crónica published that it would go from the current 5% to 7.5% and, one year after enactment, to 10%.
The political differences are concentrated in the situation of non-integrated biodiesel SMEs. According to ElDiarioAR, those companies are demanding to keep a 7.5% share of the market, while the bill provides for a gradual reduction until its elimination in 2036. When the blend reaches 10%, those firms would have 6.5% of the total market; then it would fall to 5.5% in 2029, to 5% in 2030 and to 3% in 2031. From 2032, 7% of the market could be marketed by all companies. BAE Negocios also reported that senators from different blocs are demanding a larger participation quota and more legal protection for those SMEs.
In addition, the Senate is analyzing the transfer of powers from the Nation to the City of Buenos Aires in criminal offenses committed by minors and in matters of sexual integrity. The agenda also includes the nominations of Juan Pedro Galván Greenway, Alejandro Javier Catania and Juan Manuel Mejuto.
BAE Negocios added that during the day the ratification of the agreement between the Nation and Santa Cruz to create the Monte León Marine Interjurisdictional Park is also expected, in addition to the consideration of consular appointments and tributes.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not do its own reporting on this event.
