After the general approval of the Omnibus Law this Friday in the Chamber of Deputies, Kirchnerism reaffirmed its position regarding the treatment in particular and assured that it will only accompany an article on the co-participation of the Country Tax. In addition, he questioned Javier Milei's privatization plan. The deputy of Unión por la Patria Germán Martínez condemned the police operation to control the riots outside the Legislative Palace: “When there are embarrassments inside Congress, there is generally repression outside. And it is marked by the entire parliamentary history of Argentina.”
“If the Omnibus Law is important for the ruling party, the first interested parties in ensuring that everything is done correctly should be the ruling party itself,” Martínez considered. And he accused the Government of putting together “a failed parliamentary strategy that ended in embarrassment, as was foreseeable.
Read also: Unions are on alert after the general approval of the Omnibus Law and do not rule out a new general strike
“Items that were going to be removed reappeared yesterday. There is no serious strategy and the deputies do not know what they are voting for,” questioned the Unión por la Patria deputy in dialogue with El Destape Radio. And he added: “We have to be very attentive to everything that can happen in the particular treatment. They can put items through the window and manipulate more everything that is already manipulated.”
Martínez strongly targeted the privatization plan provided for in the Omnibus Law and once again described it as “a parliamentary scam.” In addition, he demanded that the Government present a bill for each company that it considers should be privatized.
“They are circulating a draft that includes several articles and where several articles have different annexes with different companies subject to privatization. You may agree with one article and not with another. Then they will try to create a majority by doubling the list of companies subject to privatization. That's why I said it was a parliamentary scam if they moved forward with that text. They repeat the same article three times with three different annexes so that everyone can vote what they want, without any technical rigor,” Martínez argued.
And he stressed: “We must be against any attempt at privatization. And if the Government considers that a company has to be privatized, it should send a bill accordingly. And let it be the deputies in the plenary session, and not a questioned Bicameral commission, that decides whether it has to reach the venue.”
In that sense, Martínez denounced that the privatization plan is tailor-made “for speculative investment funds.” And he added: “Anyone who is thinking that the privatization process is going to go to national companies is wrong. This is privatization, foreignization and financialization. These speculative funds, as soon as they feel that the business plan does not support a project, they get up, leave and leave a scorched earth.”
Country Tax Co-participation
Representative Victoria Tolosa Paz assured this Saturday on Radio Miter that it would be good if the COUNTRY Tax article “can be rescued” during the vote because it is “the only thing that is worthwhile” in the Omnibus Law. “We need 30% to participate,” she said.
On the other hand, the former Minister of Social Development indicated that the Omnibus Law “is not going to solve the country's very serious problems.”
Deputies approved the Omnibus Law (Photo: Télam)
Regarding privatizations, Kirchnerism was concerned about the “misappropriation” of the Sustainability Guarantee Fund and a possible return of the AFJP.
Read also: The governors of JxC after the general approval of the Omnibus Law: “It is a strong message to society”
PAIS Tax: what it is and what changes apply to the Omnibus Law
The PAIS tax is a tax that is paid when purchases of foreign currency are made for savings, to pay for services abroad or for those who use a credit or debit card to pay for consumption in foreign currency.
For these cases, it establishes a 30% surcharge that is part of the savings dollar, card dollar or tourist dollar quotes, while for digital services the rate is 8%. In addition, it is one of the taxes that generates the highest revenue. In 2023, $1.5 billion entered through the COUNTRY tax.
Read also: The economic background behind the fight between Milei and the governors over the Country tax
Days before the Omnibus Law was generally approved, the governors demanded to share part of the Country Tax, but the Casa Rosada stopped the request and warned that this issue “is not under discussion.”
The background of the request of the provincial leaders is explained, first of all, by the need to find ways to improve their income in a context in which the Nation insists on achieving the objective of fiscal balance and ensures that the provincial accounts lead the list of expenses to cut.
Omnibus Law: what changes with the general approval in Deputies
This Friday, February 2, the Omnibus Law was generally approved with 144 votes in favor and 109 against, which establishes a public emergency, a reform of the State and the privatization of several public companies.
However, this step does not yet entail any changes, since the debate on the particular articles will resume on Tuesday the 6th after a quarter-intermission.
The initiative was voted with the support of the deputies of Libertad Avanza, UCR, PRO, We Make the Federal Coalition, Federal Innovation, Creo; Freedom, Production and Work, Good Free, Independence and Union of Mendoza advance.