MercoPress. South Atlantic News Agency

Capitanich announces 50% tax on luxury goods and different rates for utility services

The cabinet chief also anticipated he will attend Congress to brief lawmakers (Pic DyN)

Argentine Cabinet Chief Jorge Capitanich announced on Friday the government sent a bill to Congress raising taxes on luxury goods such as premium model cars, recreation boats, motorbikes and aircraft, and underlined that ”those who want to buy luxury goods will have to pay more,” he warned.

 In his second contact with the press at the Government House, Capitanich referred to utility prices and assured people with high incomes will pay the full price unlike low income users who will have a subsidized cost.

”Subsidies seek to make companies have profitable in the productive chain and to project the purchasing power of consumers and users,” he added.

Capitanich talked about the price agreements (to help combat inflation) saying the government will encourage them and warned that despite the resignation of Guillermo Moreno, “nobody should think this means a free for all to increase prices”.

“We are going to work to protect the purchasing power of salaries and the interests of workers and consumers”, said Capitanich.

Furthermore, he told reporters he attended a meeting on Thursday at the Olivos presidential residence held by President Cristina Fernandez, Economy Minister Axel Kicillof, outgoing minister and current head of the Debt Restructuring Unit Hernán Lorenzino, and the presidency’s Secretary-General Carlos Zannini, in order to establish goals.

The cabinet chief also announced that as of next Wednesday he will attend the Congress to brief lawmakers every month, alternatively the Lower House and the Senate, “as established by the National Constitution.”

Finally the cabinet chief said that Congress will be called to hold extraordinary sessions on Saturday to approve the nomination of Juan Carlos Fábrega as the new head of the Central bank, and Hernan Lorenzino as ambassador before the European Union, as well as other diplomats and military officers upgrading.