RIO DE JANEIRO, BRAZIL – Last week the Argentine Senate passed a new law that will provide a strong boost to the construction sector through tax incentives.
According to the head of the Argentine Chamber of Construction (CAMARCO), Iván Szczech, this new framework could attract up to US$5 billion in funds.
The law fosters the creation of a regime aimed at promoting investments in the construction of new private works carried out through capital investments by individuals who have undeclared dollars, in the country or abroad, and are seeking to invest them in construction.
“The passed bill, which was prepared with the whole private sector and the unions together with the government, provides for exemptions on personal property and profits taxe And, on the other hand, an externalization of capital specifically for the construction sector, on which we have great expectations,” explained Szczech.
Along these lines, he emphasized that the law passed on Thursday “will serve to promote the sector’s development, recover lost jobs and increase the supply of housing” and that “these are the incentives that the construction industry needs to be strengthened, generating greater investment and economic activity, and consequently more companies and more formal jobs.”
“This year was particularly difficult, we were coming from more than two years of uninterrupted decline, both in public and private works, we closed 180,000 jobs and the pandemic exacerbated this situation,” Szczech said.
The executive stated that “our main drivers for 2021 are a greater allocation of funds in the national budget and the rebound of private investment” and added that “as a result of the laws enacted today, coupled with the low construction cost in dollars, the private sector may become a great driving force to mobilize our industry.”
Along these lines, he highlighted that “there is currently a very ambitious and positive housing plan on the part of the government, which seeks to federalize economic activity. Infrastructure and housing will be the big bets for public investment, with access to basic services. In addition to all this, private investments are planned.”
Source: Construcion Latino Americana
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