First modification:
With the new energy segmentation scheme, the Argentine Government expects a fiscal saving of 350 million dollars, thanks to the reduction of subsidies in terms of electricity and gas for this year. Many Argentines will no longer have this benefit that, according to the Executive, “will be for those who need it most.”
Called a “readjustment of subsidies”, the Argentine Energy Secretariat released the details of the new energy scheme that, mainly, will reduce or eliminate the subsidy for the sectors with greater purchasing power and will remain only for the most vulnerable.
Although the change will be made according to income and consumption levels, the process will be done in stages.
The country’s energy portfolio opened the forms for applicants for the subsidy under the new conditions, in which around 13 million people are expected.
“We try to get the subsidy to those who need it most and with the tax savings we begin to converge in the works to develop the energy potential. The vast majority are not going to have increases,” said Flavia Royón, the Secretary of Energy in charge of presenting the project, at a press conference.
Other reasons for making this decision were the increase in energy costs due to the war in Ukraine, which already complicates several European countries and serves as a mirror for the rest of the world, and the agreement with the International Monetary Fund (IMF). , since Argentina agreed with the economic entity to make cuts in state energy subsidies and thus alleviate the fiscal burden.
The segmented scheme was organized into three levels: level 1 is for those with the highest income and who did not apply for registration; 2 for “lowest recorded income” and 3 for median income.
“What was defined is a fixed volume to be subsidized and not a percentage, in that sense, it is very well represented depending on the place where each person resides,” assured Federico Bernal, Undersecretary of Hydrocarbons.
➡️ The update scheme will be based on 4 pillars:
– Income and economic situation of the users.
– Region of the country they inhabit.
– Consumption level.
– User category. pic.twitter.com/L5taKp460d— Secretary of Energy (@Energia_Ar) August 17, 2022
Said fiscal relief is expected to allow savings of between 0.4% and 0.5%, which will be reflected in the Gross Domestic Product (GDP) of 2023, while the goal agreed with the IMF of 2.5 of shortfall for this year.
The new measure also seeks savings of 14 million dollars with the reduction of the subsidy on the water bill.
With EFE and local media.
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