LLA fails to get final version of the Ley Bases in the Senate 

The debate was postponed until next week due to disagreements over asset laundering and income tax legislation

In the midst of the second national strike of the CGT on Thursday, La Libertad Avanza (LLA) failed to gather enough support from its allies to obtain a final version — called a dictamen — of President Javier Milei’s omnibus bill, also known as the Ley Bases. The debate in the Senate’s Budget and Finance Committee was postponed until next week.

LLa’s goal was to get through the debate portion of the process in order to treat the Ley Bases and the fiscal package in the chamber next week, but disagreements in the so-called dialogist blocs prevented that from happening. 

“Everything happens next week; we couldn’t do it today,” PRO bloc leader Luis Juez complained to the press. Meanwhile, the legislators of Unión por la Patria (UxP) did not participate in the meeting due to the national strike of the CGT.

Once again, PRO Senator Guadalupe Tagliaferri criticized the fiscal package, particularly the section devoted to asset laundering. “This is an excessively generous proposal. Money is laundered for free, without caps, only on the condition that it is left until December 2025. It is an extremely short period considering Argentina’s instability. There is no penalty,” Tagliaferri pointed out.

This is the second time that the debate in commission has been postponed. On Wednesday, they tried to obtain a final version, but doubts raised by some LLA allies in the Senate forced the debate to be passed until Thursday. 

After Tagliaferri pointed out contradictions in the Incentive Framework for Large Investments (RIGI, by its Spanish initials), the government conceded the possibility of accepting changes in the Senate. Presidential Spokesperson Manuel Adorni confirmed this.

Is the May Pact in jeopardy?

Martín Lousteau’s (UCR) vote, who already voted against Javier Milei’s mega-decree, is still unknown. There is growing doubt as to whether he would support the RIGI legislation and changes in personal property taxes. 

RIGI is a part of the Ley Bases, with which LLA intends to offer benefits for investments over 200 million dollars. The goal is to provide a framework of legal certainty in order to speed up investments in the country.

Additionally, it appears the fiscal package will be heading back to the Lower House due to the refusal of several governors of Patagonia provinces to reinstate income tax.

In view of this scenario, the Peronist opposition is more and more confident that the Senate will introduce changes to the Ley Bases and the fiscal package and send both bills back to the Chamber of Deputies, with the hope that debate will get bogged down.

If this happens, the government would not be able to get either bill approved in time for the May Pact, the national agreement President Javier Milei has called on governors to sign on May 25.

Originally published in Ámbito


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