When textile, clothing, footwear and leather goods companies settle their salaries in November and also have to pay employers' contributions by the middle of next month, they will have some relief from their accounts. It is due to the Government's decision to anticipate the application of the non-taxable minimum (NIM) of $ 12,000 for the payment of contributions, a benefit that will be valid until December 2019.
Industries had been calling for such a measure for more than a year before even enacting the December 2017 tax reform. Under the law, 27,430 companies in those industries planned a $ 2,400 NMI this year but are now going to rise to $ 12,000 per employee. Registered In addition, as of January 2019, the non-taxable minimum will increase to approximately $ 17,500, due to the adjustment for inflation established by the tax reform.
This was the axis of the announcement made yesterday by the Minister of Production and Labor, Dante Sica, in a meeting at the Government House, led by President Mauricio Macri. Entrepreneurs Miguel Acevedo (UIA) participated in the meeting; Claudio Drescher (CIAI); Luis Tendlarz (FITA); Sergio Panossian (CIC); and of the trade union sector, Hugo Benítez (AOT) and José Minaberrigaray (SETIA).
Fashion Week was also announced December 6-9, with discounts on stores up to 35% and three interest-free installments, which will cost the state $ 150 million. Sales are expected to be around $ 2,500 million.
"The textile, footwear and leather goods sector is fundamental to Argentina's productive structure and we want to accompany it at the moment and at the same time promote its transformation," said Sica. The minister admitted that it is necessary "to work together to boost consumption, sustain job stability and advance the formalization of workers and the production chain." It was a way of putting into words the critical situation that these industries are going through.
According to UIA data, the textile-clothing chain collapsed 25% year-on-year in September, while the Moroccan sector says that in recent months "3,500 jobs were lost and 80 factories were closed". The footwear industry is also hit by falling activity and, according to versions, would have lost about 10,000 jobs.
"The measures are very positive because these sectors should be the most punished, they are greatly affected by the recession," Acevedo said, adding that "they are finally looking at the industry." Overestimation of the non-taxable minimum for employer contributions encouraged industrialists to the point that Acevedo said "this can be replicated in many other sectors." Although there is no progress in this regard, the labor-intensive industries, such as food and beverage or metallurgy industries, would be in the portfolio.
Consulted on this point, Industry Secretary Fernando Grasso explained that "there is a general production policy, which is to reduce the tax burden associated with labor and this guideline is reflected in the tax reform," but added that "the advance of the minimum non-taxable (NIM) is very focused on the textile and clothing industry, footwear and leather goods, due to the level of informality and the most critical situation of these sectors. " "The idea is to focus it here and not extend it to other sectors," Grasso told El Cronista.
During a subsequent meeting with Sica, SME entrepreneurs raised the impact of interest rates and other issues on the agenda. "We want the bonus (end of the year) to be taken on account of national taxes, VAT or social charges," said Ariel Aguilar, president of CIMA (morroquineros). And he said that smooth lines are needed for the sector, "not to exceed 30%" and export incentives.