BUENOS AIRES, Oct 21 (Reuters) – Argentina´s financial system ministry mentioned on Wednesday it had despatched the nation´s Congress a invoice to spur development exercise by tax and financial incentives, an effort to create jobs and increase funding in an financial system ravaged by the coronavirus pandemic.
The challenge exempts investments in development from the non-public property tax for 2 years. As a substitute, the invoice proposes a single tax for individuals who declare property in nationwide or international forex and allocate these funds to new works, amongst different measures, the ministry mentioned in a press release.
The proposal comes as Latin America’s third-largest financial system plunges into its third 12 months of recession, exacerbated this 12 months by the results of the coronavirus pandemic and a protracted lockdown to stem the virus’ unfold.
The administration of President Alberto Fernandez additionally despatched a second invoice on Wednesday to facilitate entry to mortgage credit score, the ministry mentioned within the assertion.
“At the moment two payments have been despatched to the Nationwide Congress with a give attention to the development trade, a robust engine to spice up the financial system and generate jobs,” Financial system Minister Martín Guzmán mentioned on Twitter.
Building exercise, a key financial driver in Argentina, plummeted 31.eight% within the first eight months of 2020 in comparison with the identical interval in 2019.
“We’ll be pleased about the help of the Nationwide Congress in these initiatives that can contribute to a extra vigorous financial system,” Guzman mentioned. (Reporting by Jorge Iorio and Eliana Raszewski; writing by Dave Sherwood; Modifying by Aurora Ellis)