VETO

Decree 2272/94

See the Draft Law sanctioned under number 24,416.

Bs. As., 22/12/94

VISTO PROJECT OF LAW No. 24,416, sanctioned by the HONORABLE CONGRESS OF NATION on 7 December 1994 and

CONSIDERING:

That the aforementioned Bill creates the Agricultural Emergency Fund for the support of areas declared in a state of agricultural emergency.

That article 2 of the rule provides that the Fund shall be integrated with the result of the increase of two (2) points of the tax acronym set out in article 23 of the Internal Revenue Act, a text ordered in 1979 and its modifications, and article 3 provides for the MINISTERY OF ECONOMY and ARTWS and PUBLIC SERVICES for the appropriation of the resources allocated to the Fund.

That, in order to do so, the provisions of the draft sanctioned law contradict the principles and policies adopted in terms of the structuring and application of the tax system in a framework of economic stability, as well as the implementation of due order of public spending in response to a proper weighting of priorities in terms of the multiple needs to be met with the available resources.

That the above-mentioned policies are essentially based on the elimination of distortive taxes that alter the overall equity of the system, constituting an increase in costs for certain sectors in favour of others.

It is clear that the measure interferes with public spending policy and its distribution in order to priorities to be established on the basis of a comprehensive and unified consideration of resources and needs.

That the implementation of the Federal Fiscal Compact has clearly sought to grant stability and transparency to the global fiscal burden and to obtain the formation of tax systems that suppress the incidence of distorting taxes on the costs of the economy in a context of stability and competitiveness.

That the measure in question suffers from a technical flaw in what it does to the tax collection forecasts that should nurture the Agricultural Emergency Fund.

That in the merits of the above reasons it is appropriate to fully veto the Bill of Law sanctioned under No. 24.416.

That the present measure is determined in the use of the powers conferred by article 83 of the National Constitution.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - See the Bill of Law sanctioned under No. 24,416.

Art. 2° - Return to the HONORABLE CONGRESS of NATION the Bill of Law cited in the previous article.

Art. 3° - Contact, post, give to the National Directorate of the Official Register and archvese. - MENEM. - Domingo F. Cavallo.