IMPESTS Decree 404/96 Internal Tax Law. Modification of liquors.

Bs. As., 12/4/96

VISTO Issue No. 034-003879/96 of the Register of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, Decrees No. 739, 740, 741, and 742 of 31 May 1995 and the provisions of Article 86 of the Internal Tax Law .t.o. in 1979 y and its amendments, and

CONSIDERING:

That the NATIONAL EXECUTIVE PODER is empowered by article 86 of the Internal Revenue Act .t.o. in 1979, and its modifications, to leave without effect to modify temporarily and when it advises the economic situation of one or certain industries, the taxes provided in it.

It is necessary to coordinate tax policy with the remaining measures taken to strengthen the process of stability and reactivation of the economy.

In this regard, it is considered appropriate to temporarily reduce the liquors established in articles 43 and 69 of the Internal Revenue Act .t. o. in 1979. and its modifications and leave without effect the liquor of article 62 of the Law.

That consequently, it is appropriate to replace the regime established by Decree No. 739/95 in relation to the products obtained by article 43 of the Internal Tax Law tt.o. in 1979. and its modifications, on the alcoholic beverages defined in it, and of Decree No. 742/95 in relation to the products reached by article 62 of the Internal Tax Law .t.o. in 1979 presente and

That also, it is necessary to leave without effect temporaryly the tax set for the goods defined in Title II, Chapter VI, Section 70, subparagraph (a) of the Internal Revenue Act .t.o. in 1979 C and its modifications, regarding carpets, tapestries and similar understood and defined in the annexed table I to the aforementioned article, items N. C. A. 58.01/00, 58/03.

That Decree No. 740/95 provided for the extension of the suspension of the levy set out in Title II, Chapter VI, article 70, subparagraph (a) of the Internal Revenue Act st.o. in 1979, and its modifications, on the light vessels for recreation and sports and their outboard motors covered by annex I to the aforementioned article, items N.C. A. 8401 and 8501.

That Decree No. 741/95 provided for the extension of the transitional reduction of the licuots of the levy established in the first and second paragraph of article 63 of the Internal Revenue Act .t.o. in 1979. and its amendments, and replaced article 83 of the Regulatory Decree of the Act.

That according to price indicators, a reasonably adjusted evolution has been observed to the reduction or suspension, where appropriate, of the rate of the law tax and a maintenance of the sales values during the period after its original application.

The presence in the local market of products achieved by this regime from marginal operations has been noted.

Policies to discourage the practice of such operations should be promoted by facilitating their incorporation into the formal circuit of the economy.

That the measure will enable an increase in production levels, improving the efficiency and competitiveness of the sectors involved, inducing greater transparency in the markets of encumbered products, which will facilitate the control and compliance of tax obligations.

That the liquors established by the Act excessively encumber consumer goods, so the corrective measure will contribute to the decrease in the prices with which products reach consumers.

That the expected additional demand will result in an increase in the collection of import tariffs and taxes on profits and the added value that seeks the neutrality of the measure in relation to the tax collection level.

The Permanent Legal Service of the MINISTERIO DE ECONOMIA AND ARTWORKS AND PUBLIC SERVICES has taken the appropriate intervention.

That this Decree is issued in use of the powers conferred by article 86 of the Internal Tax Law .t.o. in 1979. and its amendments.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 las Amend the liquors provided for in article 43 of the Internal Revenue Act det.o. in 1979 y and its amendments, as follows:

"1 Whi Whisky	12 %
2 Co Cognac, Brandy, Geneva, Pisco, Tequila, Gin, Vodka or Ron	8 %
3 ; Depending on your graduation, excluding the products indicated in 1 and 2;
. 1st class, 10th to 29th and fraction.	6 %
2nd class, 30th and more.	8 %

Art. 2o ). Modify the liquota provided for in article 69 of the Internal Revenue Act ).t.o. in 1979). and its modifications, reducing it to CUATRO FOR SCIENT (4 %).

Art. 3o . Leave without effect the application of the levy established in Title II, Chapter VI, Section 70, subparagraph (a) of the Internal Revenue Act st.o. in 1979 y and its modifications, on carpets, tapestries and similar understood and defined in annex I to the mentioned article, headings N. C. A. 58.01/00, 58.02/01 and 58.03/03/

Art. 4o . Leave without effect the application of the tax set out in Title II, Chapter II, Section 62 of the Internal Revenue Act .t.o. in 1979. and its modifications on toiletries.

Art. 5o . Prove Decrees 739/95 and 742/95 from the day after the publication of this Decree in the Official Gazette.

Art. 6th . Prorrógase a partir del 1 de junio de 1996 y hasta el 31 de mayo de 1997 la vigencia de los Decretos No 740/95 y 741/95.

Art. 7o Las The provisions of Articles 1, 2, 3 and 4 of this Decree shall govern from the day after the date of publication in the Official Gazette and until 31 May 1997.

Art. 8o . Note the HONORABLE CONGRESS OF NATION.

Art. 9th . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Jorge Alberto Rodríguez. . Domingo F. Cavallo.