Eliminating or reducing taxes, in addition to lowering the high labor costs that Argentina faces, is essential to support an economic recovery in Latin America's third largest economy, said Miguel Acevedo, president of the Argentine Industrial Union (UIA) on Monday (04.99.2017).
In an interview with Reuters, the president of the Argentine Industrial Union, Miguel Acevedo, said that the reduction of taxes and labor costs are key measures to support the recovery of the Argentine economy.
El Government plans to send to Congress a tax and labor reform, following the legislative elections in October, with the aim of accelerating an improvement in the country's economy, which recently left a recession behind.
"This is essential for companies because it will give us a horizon and predictability for investments, which is why I am optimistic that 2018 will see us with greater investments and more production and possibly a much more active domestic market," explained the leader of the UIA, the largest business group in the country.
Acevedo recently met with President Mauricio Macri and Finance Minister Nicolás Dujovne.
After 15 consecutive months of year-on-year decline in industrial activity, the sector has seen three months of growth since May due to a slight recovery in consumption and higher exports, especially in the automotive sector.
According to Acevedo, the government will promote a tax reform that will not be a "shock" reform but will be carried out within a period of five years and that aims to lower or eliminate distorting taxes but at the same time broaden the base of contributors given that around 40 percent of the economy is informal.
Regarding labor reform, Acevedo said that an agreement must be reached with unions and the State to lower high labor costs and encourage the inclusion of unregistered workers.
Among other alternatives, the business leader He proposed lowering costs for industries that are further away from ports.
Source: Reuters
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