Monday, March 22, 2010

Controversy over reform of the Cheque Tax


Senator Guillermo Jenefes

Senator Guillermo Jenefes

Before the proyect to reform the Cheque Tax issued by the Congress, which aims at raising the percentage of tax that is distributed in the provinces, Cristina Kirchner gave the order to not approve the initiative.

The opposition demands that the Government shares the whole of the funds with the provinces, about 10 million pesos. However, there are already two Kirchnerist Senators, Guillermo Jenefes and Luis Viana, who have expressed support for the initiave, as they want their provinces to receive extra millions in order to consolidate their accounts. Both Senators were abscent for lunch at the presidential residence in Olivos on Saturday. Jenefes estimated that the project would mean an extra 300 million pesos for the provinces “without the need of our officials and lawmakers to beg to the Nation” and without “our Governor having to rely on the friendliness he has with the national administration”. So far there would be 39 lawmakers in favour of the bill and 33 against.

But before this scenario, the Government has threatened to take away more resources from the provinces than they would earn with the proyect. If the Congress passes the new law, the provinces would pocket an additional $ 8,200 million and ANSES 2.500 million pesos, thus the Nation would resign resources of 10,700 million pesos. The retaliation, the Govenrment House would cut other resoures to the provinces for over 12,000 million. According to Florencio Randazzo: “If they change the Cheque Tax, the provinces would lose $2,000 million instead of earning what they expect”.

Source: Momento 24 | News from Argentina and the world

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