Decree 1451/98

Bs. As., 10/12/98

VISTO Issue No. 020-001960/98 of the Register of the MINISTERY of ECONOMY AND PUBLIC SERVICES AND

CONSIDERING:

That the Bill registered under N° 25.053, sanctioned by the HONORABLE CONGRESS OF NATION on 18 November 1998, creates the National Fund for Teaching Incentive, which will be financed by an annual tax on motors, motorcycles, motorcycles, boats and aircraft registered or based in the national territory.

That the expected imposition is established by a term of CINCO (5) years from 1 January 1998.

That for reasons of tax policy and administration, the application of the tax is not considered to be in a retroactive manner at the beginning of a fiscal period that is on the eve of its completion, especially taking into account the difficult task involved in the preparation of the respective registers of the goods covered by the tax, which could result in a superposition of the tax for the following year.

Furthermore, article 11 of the Bill provides that the Fund shall circulate annually the total of its produced, which shall not be less than the seven hundred million pesos ($ 700,000), determining that if the collection of the tax referred to in Article 1 does not provide sufficient resources to reach the amount mentioned above, the National Administration shall guarantee that the annual floor shall affect the resources of the party to be paid to the NACIONAL STATE.

That the current situation of the National Treasury and that envisaged for 1999 are affected by a decrease in the perception of resources, mainly the result of the impact of the financial fluctuations of the international markets, which would not allow the attention of new expenses as the annual guarantee referred to in article 11.

That, on the other hand, and taking into account what was expressed in the previous consideration, the impact of resources on the part of the NATIONAL STATE would aggravate the situation, leaving without financing the basic needs of the jurisdictions and entities of the National Administration.

That compliance with the provisions of that article would also accentuate the originally envisaged deficit, thereby changing the fiscal targets committed to international agencies.

On the other hand, article 20 of the Draft Law provides that the liquidation of the remuneration of teachers who comply with the conditions set out therein shall be retroactive as at 1 January 1998, being paid in DOS (2) contributions, each in the third and fourth quarter of that year.

That such a precept is directly imposing an expense before the resources are generated, which distorts the concept of a specific fund and adds a heavy additional burden to that of the guarantee to the National Treasury.

That the attention of this expenditure is not contemplated in the budget forecasts of the current exercise or the next and in the absence of financing makes it unviable its liquidation and payment as provided for by that norm.

That according to the above, it is considered appropriate to observe the term "as of 1 January 1998" set out at the end of Article 1, the phrase "If the collection of the tax established by Article 1 of this law does not produce sufficient resources to reach the amount quoted, the National Administration will guarantee that annual floor affecting the resources of the party that it is entitled to receive the National State from the collection of other taxes included without affecting the percentage provided for in the insurance costs of the Article 11

That this measure does not alter the spirit or unity of the Draft Law sanctioned by the HONORABLE CONGRESS OF NATION.

That the General Directorate of Humanitarian Affairs of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICOS has taken the intervention that belongs to him.

That the NATIONAL EXECUTIVE POWER is entitled to dictate the present pursuant to article 80 of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION IN GENERAL AGREEMENT OF MINISTERS

RIGHT:

Article 1 .Observe the expression "as of 1 January 1998" stated at the end of Article 1, the phrase "If the collection of the tax created by Article 1 of this law does not produce sufficient resources to reach the amount cited, the National Administration will guarantee that annual floor affecting the resources of the party to the State to receive the collection of other taxes without affecting the percentage provided for in the Bill 11 and the amount included in the project.

Art. 2° .With the saving established in the previous article, please fill in, enact and teagase by the National Law the Bill registered under No. 25.053.

Art. 3rd Tell the HONORABLE CONGRESS OF NATION.

Art. 4° Communicate, publish, give to the National Directorate of the Official Register and archvese. .MENEM. .Jorge A. Rodriguez. Roque B. Fernández. Carlos V. Corach. .Raúl E. Granillo Ocampo. .Alberto J. Mazza. .Jorge Domínguez. Antonio E. González. Guido Di Tella. Susana B. Decibe.