Income Tax Changes & more – 14th Sep 2023

ber that you can’t have more than sixty-six hundred pesos on your card (about nine dollars) and that the emergency balance on the card remains at 200 pesos (some twenty-eight cents), equivalent to four subway rides.

Speaking of funds, the Canadian start-up Summit Nanotech Corp is seeking to raise 150 million dollars in funding to accelerate the development of its technology for extracting lithium from South American salt flats. The company plans to have a demonstration plant in operation by mid-twenty-twenty-four and reach commercial scale by the end of twenty twenty-five, with potential partnerships in Chile and Argentina.

Moving on, Argentina is poised for an energy trade surplus in twenty twenty-four, marking a significant turnaround after a decade of deficits. The country’s energy sector, which faced a substantial need for foreign currency, might provide relief to the Central Bank this year.

Energy imports dropped by 3.5 billion dollars between January and July of this year compared to the same period in twenty twenty-two. This positive shift is attributed to lower global energy prices, improved water generation, and increased electricity imports from Brazil. Diesel fuel imports saw a significant reduction, primarily due to a shift to the use of liquid natural gas and reduced domestic demand caused by agricultural drought.

While energy exports slightly decreased, the report projects that the energy trade balance will be almost in equilibrium for twenty twenty-three, with a potential surplus in twenty twenty-four, driven by hydrocarbon production growth and improved sectoral trade balance.

On a related note, President Alberto Fernández has assured Chile that Argentina will continue supplying natural gas until the end of twenty twenty-four. Argentina’s natural gas sales to Chile saw an increase of almost ninety percent from last year.

An industry that’s also seeing increases is car manufacturing. The Association of Automotive Manufacturers reported a significant year-on-year growth of almost twenty percent. Exports of vehicles abroad also saw a seven percent increase in the first eight months of twenty twenty-three compared to the same period in twenty twenty-two.

Back to the topic of trade with Brazil, the country’s President Luiz Inácio Lula da Silva is urging a meeting of European Union and Mercosur leaders to make a decision on a long-pending trade deal. Lula emphasized the need for equal treatment and a clear yes-or-no decision regarding the trade deal, which has been under negotiation for over two decades.

The trade agreement remains unimplemented due to new demands, including a European side letter with stricter environmental terms, particularly related to deforestation.

Meanwhile, Argentina is becoming increasingly reliant on Brazil as the shortage of foreign currency limits international trade options. Some Argentine government officials believe that Brazil’s stronger economic performance could offer loans and credit instruments to help Argentina maintain economic activity.

In August twenty twenty-three, Argentina recorded its eighth consecutive month of negative trade balance with Brazil, totaling a deficit of almost 300 million dollars. Brazil remains Argentina’s primary trade partner, due to the importance of Brazilian imports for Argentine production.

Also on the topic of international relations, President Alberto Fernández is embarking on his farewell tour, attending the G20 Leaders Summit in India, where he aims to secure an international victory as his presidency nears its end. Fernández plans to address environmental challenges, sustainable development, human rights, gender equality, and the need to reshape the global financial architecture to aid developing nations. This is an opportunity for him to regain influence and bolster his profile after ceding power to Economy Minister Sergio Massa and opting not to seek re-election, which diminished his political relevance.

Speaking of an international victory, the Men’s National Football Team secured six points in the South American qualifiers for the twenty twenty-six World Cup. The team faced Ecuador and Bolivia, with Lionel Messi’s sensational free-kick against Ecuador sealing a 1-0 win. In the subsequent match against Bolivia, even with Messi resting, Argentina secured a comfortable 3-0 victory.

Since we mentioned the national football team, the demand for tickets is at an all-time high, and the Argentine Football Federation (or AFA) is seizing the opportunity with a new subscription model. AFA ID is a way for fans to snag tickets to see the national team, but it offers three membership levels that stirred the pot with its prices. The top tier costs more than forty times the country’s minimum monthly wage, at almost five million pesos for the annual membership (some seven thousand dollars at the parallel exchange rate), and comes with twenty twenty-four Copa América and twenty twenty-six World Cup tickets guaranteed for purchase for a limited time.

Despite criticism, the AFA argues that it’s not mandatory to become a member, as there will still be some tickets available for the general public. Plus, the Bronze tier costs 24,000 pesos per year (some thirty-five dollars) and it grants priority ticket purchases for friendly matches.

And to close this edition, a patisserie from the Buenos Aires neighborhood Villa Ortuzar also secured a victory after being featured in La Liste, the French guide that runs the Pastry Awards twenty twenty-three. Belén Melamed's Patisserie opened this year, with recipes inspired by France but uniquely Argentine.

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