The governor of the province, Omar Perotti, participated this Tuesday in Santa Fe in the presentation of the Federal Agroindustrial Plan prepared by the Argentine Agroindustrial Council. It is a tool to apply to different sectors over the next decade, with the aim of increasing production, exports and employment. It should be noted that some of the proposals are considered in the new Agroindustrial Development Bill.
After the meeting, Perotti remarked that the presidents of the Santa Fe and Rosario Stock Exchanges are “the ones who have had the responsibility of carrying out this plan from the Argentine Agroindustrial Council, a very good job raising the potential of the sector and raising it with credible and serious guidelines on how with different incentive measures we can achieve a higher level of investment, a higher level of exports and a higher level of employment”, said the president.
And he added: “The agro-industrial sector is key in the province of Santa Fe and it is key in Argentina, to be able to have a framework agreement that allows us a law that supports a minimum 10-year policy, we consider it central.”
Subsequently, the governor recognized the work of the professionals who have contributed their views to all sectors: “It goes far beyond the agro-industrial issue specifically, there is a comprehensive view of the country and the link between each of the productive chains that the sector incorporates. . I think they are one of the necessary proposals for Argentina to come, I think it is key for Argentina to be able to order its future”.
In addition, Perotti said that “he wants these things to be dealt with in the National Congress, because they are the initiatives that have to unite us to give a sector a predictable, medium-term policy, in which they feel with the vocation and the accompaniment to be investing. The sector reacts positively to any stimulus, quickly multiplies any instance it receives as an incentive and that is the way to fully recover Argentina, that is the way to have a new production matrix with federal impact and where recognition of that federal production it is kept in the daily monitoring of better logistics, cost reduction, differential tax treatment”, stressed the president.
In this sense, he pointed out that “we must speak clearly about a reduction in the withholding issue, there must be a gradual decrease in that and a very different treatment for regional economies and generate momentum and work directly,” concluded the governor of the province.
GIFTS
At the meeting that took place at the Santa Fe Stock Exchange, the Ministers of Production, Science and Technology, Daniel Costamagna; of Government, Celia Arena; and for the Environment, Erika Gonnet; the presidents of the Santa Fe Stock Exchange, Martín Vigo Lamas; from Rosario, Miguel Simioni; from Buenos Aires, José Carlos Martins; of Cordoba, Juan Carlos
Martinez; from Chaco, Ariel Ojeda; from Entre Ríos, Diego Maier; and from Bahía Blanca, Maximiliano; the president of ACSOJA, Luis Zubizarreta, among other authorities.
PLAN FEDERAL AGROINDUSTRIAL
The plan as a whole aims to generate positive impacts on production, exports and employment, establishing incentives to advance in sustainability, innovation and equity.
Goals:
– Exports: reach 100 billion USD from the agro-industrial complex (agriculture, livestock, fishing and forestry).
– Create 878 thousand jobs throughout the country.
– Promote investments to achieve quality digital connectivity for 100% of the population and rural productive areas.
– Increase by 20% the number of producers throughout the national territory.
– 50% increase in the production of food and fibers for export, under verifiable use of systems of Good Agricultural Practices, traceability and/or internationally recognized certifications.
– Prepare a proposal for the productive transition towards 2033 with special emphasis on achieving carbon neutrality for the entire agribusiness by 2050, with the aim of having at least half of the exporting companies under carbon balance programs by 2033 .
– Productive and social integration to achieve local, safe and accessible supply of family farmers and local agro-industries, with a view to including at least half of these producers in the supply chains and significantly reducing food security problems in the areas less favorable in the country.
The plan is made up of three pillars, one of which is linked to Productive Development. It includes different blocks, namely:
>> Promotion of investments:
>>> Special regime for accelerated amortization of investments for the acquisition of new capital goods in the Income Tax.
>>> Comprehensive Exchange Plan aimed at the acquisition of new machinery and processing technologies of national origin, as well as imported amortizable capital goods that are not produced or assembled in the National Territory.
>>> That the trusts and common investment funds whose assets are assigned at least 70% to relevant agro-industrial activities enjoy ALL the benefits consigned.
>>> Simplify the operation for the different productions: for regional economies, it proposes to reduce the VAT perceptions and the advance payment of the Income Tax, as well as the reduction of 50% of the IIBB taxes corresponding to the collection of the different provinces. For the meat chain: Reduce the VAT rate for the slaughter service and the balanced food chain to 10.5%, eliminate the IIBB for the primary producer in all provinces.
>>> Establish a decrease from 6 to 3 months in the period available to make use of the balance in favor of VAT obtained in investments in fixed assets and carried out by any of the agro-industrial activities.
>>> Modification in the methods of valuation of stocks for wintering and/or fattening in the pen.
AGROINDUSTRIAL PROMOTION LAW
>> Benefits for agricultural producers:
>>> Tax valuation of the wintering farm the same as the breeding farm.
>>> Accelerated amortization of personal property, livestock, improvements and constructions in 1 or 2 years.
>>> Refund of the technical balance of VAT in 3 fiscal periods for investments in fixed assets.
>>> Tax Credit Certificate (50%) for the purchase of fertilizers, inputs, biologicals, autogamous controlled seeds, genetics/livestock health, certification of quality/safety/triple impact standards.
>>> New employment: for new hires, 50% of social security contributions are deducted for at least 2 years. For MIPyMES the deduction will be 100%.
The improvements presented over the original Bill are detailed below:
>> Requirements: registration is eliminated and replaced by Digital Single Window.
>> Term: the regime is extended from 4 to 10 years, extendable.
>> Incrementality: it is evaluated every 2 years -previously every 1-, without a baseline.
>> Accelerated amortization: the amortization term is reduced to 2 years (Originally it was 3 and 4 installments); it is extended to all investments -includes livestock and perennial plantations- and improvements are added such as wire fences, waterways, perforations, etc.
>> Property valuation: the minimum weight requirement is eliminated.
>> New Employment Promotion: a chapter is incorporated with a 50% reduction in employer contributions for new jobs and up to 100% for MSMEs.
>> Certificate of Fiscal Credit (financing): a minimum budget is set – 0.15% of exports (MOA and PP) 80% must go to MSMEs -Tranche 1-.
>> Tax Credit Certificate: requirements are simplified and a program for quality management systems and official certifications is added.
>> Promotion of exports with added value: benefits are incorporated in registration fees and bonus for procedures for first exports.
>> Compensation and stimulus program for small producers: The Executive Branch is entrusted with the extension of the term.
