Lower House to Take Up Central Bank Reform and Other Bills on Wednesday

The Chamber of Deputies is preparing for a key session next Wednesday, August 26. The ruling party, with the backing of allies from the UCR and the PRO, is pushing for the treatment of the reform of the Central Bank’s Organic Charter, along with other relevant projects. The call was confirmed by parliamentary sources and reflects the Government’s intention to advance its legislative agenda.

What projects will be taken up in the session?

According to Crónica, the session will include the Central Bank reform, the new Tax Innocence Law, and the patent agreement with the United States. Additionally, it will attempt to give half sanction to the Free Trade Agreement between Mercosur and Singapore, signed in December 2023, and to the Patent Cooperation Treaty (PCT).

What changes does the BCRA reform propose?

The Executive Branch’s initiative introduces central modifications to the BCRA’s Organic Charter. According to the project, the central objective of preserving the value of the currency is reestablished, and the Central Bank is prohibited from financing the Treasury through monetary issuance. These points were detailed in the Cabinet meeting led by President Javier Milei, as reported by the Presidency of the Nation.

What does the new Tax Innocence Law imply?

The tax innocence bill, which will also be taken up in the session, eliminates the annual income and asset caps that previously limited access to the simplified Ganancias regime. Additionally, it reduces fines by 25% for individuals and small and medium-sized enterprises that adhere to the regime.

What is the status of the project according to the Government?

The Presidency of the Nation reported that the project to reform the BCRA’s Organic Charter is being drafted by the Executive Branch. At the Cabinet meeting on July 9, President Milei provided details on the initiative and announced that the preliminary draft would be finalized in the coming weeks. Once completed, it will be sent to Congress for consideration.

What international agreements are added to the agenda?

In addition to the BCRA reform and the tax innocence law, the ruling party will seek to advance the Free Trade Agreement between Mercosur and Singapore, signed in December 2023, and the Patent Cooperation Treaty (PCT). These agreements are part of the Government’s international insertion strategy.

Verifiable data

• The session is called for Wednesday, August 26.
• The request for the session was made by La Libertad Avanza, with support from the UCR and the PRO.
• The BCRA reform seeks to prohibit the financing of the Treasury through monetary issuance.
• The tax innocence law eliminates income and asset caps for the simplified Ganancias regime.
• Fines for individuals and SMEs would be reduced by 25%.
• The Mercosur-Singapore Agreement was signed in December 2023.
• The Patent Cooperation Treaty (PCT) is also on the agenda.

Comparison of sources

Crónica reports on the call for the session and the included projects, while the Presidency of the Nation details the drafting status of the BCRA reform project and the Cabinet meeting where it was discussed. Both sources agree that the reform seeks to preserve the value of the currency and prohibit the financing of the Treasury. However, Crónica adds details about the tax innocence law and international agreements, which do not appear in the official communication from the Presidency. On the other hand, the Presidency confirms that the project is still being drafted, while Crónica takes for granted that it will be taken up on Wednesday. This difference suggests that the schedule could be adjusted.

Value module: calculation of the fine reduction

To gauge the impact of the fine reduction proposed in the tax innocence law, one can calculate the percentage reduction. According to the project, fines would be reduced by 25% for individuals and SMEs. If an original fine were $100, the new amount would be $75. The operation is: 100 – (100 * 0.25) = 75. This calculation is straightforward and does not require currency conversion.

Document: Tax innocence bill (according to Crónica).
Body and date: Chamber of Deputies, call for session on August 26 (note date: August 21).
Unit: Argentine pesos (ARS).
Values used: Original fine = $100; reduction = 25%.
Operation: 100 * 0.25 = 25; 100 – 25 = 75.

What to follow

It is advisable to follow the evolution of the BCRA reform project, as the Government has not yet sent the final text to Congress. It is also relevant to monitor whether Wednesday’s session is confirmed or undergoes modifications, as the call could be adjusted depending on the progress of parliamentary negotiations.