Salvador FemeniaCAME’s press secretary explained in an interview with Channel E The reasons behind the decline in consumption and the challenges faced by SMEs under the scenario of uncertainty and tax pressures.
Decreased consumption and loss of competitiveness
Feminia She described a convincing panorama: According to the entity’s reports, “We have seven months of low consumption, from April to October“This deterioration worsened, especially before the elections. He pointed out that the months of September and October are the months.”minimumAffected by the lack of recovery in real wages and the impact of imports on national production.
The CAME Secretary also warned that the problem is not exclusively Argentine, but is more serious in the country due to its financial structure. He explained that “Argentina has a very high tax system and poor quality taxes.“, which reduces competitiveness and makes production activity more expensive. Added to this are infrastructure costs, whether due to poor road conditions or an insufficient railway network, which limits the ability to compete with countries such as China.
Regarding reforms that would enhance activity, Feminia He considered that employment and tax initiatives could help, but were not sufficient if predictability was not achieved. He highlighted that “The market must have greater credibility in the economic programHe stressed that investment only comes when there is a clear, long-term horizon. He insisted that integrating technology and innovation would be essential for export and boosting the domestic market.
Hitting SMEs, rising rates of informal activity, and the need for consensual reforms
Regarding the situation of small and medium enterprises, Feminia They recognized that they were suffering from profound fatigue: they had accumulated hits from different economic cycles and were showing resistance to investment. Not only have businesses been lost in recent years, but the informal economy has grown in the face of financial pressures, making competitiveness more difficult, he noted.
Regarding the Monotariputs, he pointed out that there is still no official document that would allow assessing the impact of the labor reform. He admitted that ““If we move to a self-employment system (…) we will have to reduce the burden that exists now, because many independent workers will not be able to bear the current tax cost.”. to FeminiaThe main challenge is to move towards a scheme that generates tax inclusion and does not drive out taxpayers.
He also analyzed the tourism situation, highlighting that the past long weekend was better than expected thanks to the efforts of tour and gastronomy operators. Although the previous influx of international tourism has not yet been reached, it has come at a cost.”The exchange rate is a little better“, which helped boost activity.
In conclusion, he stressed the need to reach broad agreements: “The tax issue is not only a national issue: it includes regional taxes and municipal taxesHe considered it necessary for all levels of government to agree to improve the system, given that there are “unpayable” taxes today in light of the current situation of instability.