The municipality of Tres de Febrero presented a proposal to establish a local regime of incentives for large investments (RIGI), with the aim of promoting large-scale projects and encouraging job creation, in the context of developing an industrial park and a logistics park in the district.
The announcement was made by La Libertad Avanza mayor, Diego Valenzuela, during his participation in the streaming program Economía de Quincho.
Following the model of the RIGI promoted by the Government of Javier Milei at the national level, the initiative seeks to be approved this Friday through an ordinance in the City Council, with the purpose of offering greater legal certainty to investors. “If the government changes, there is a very strong element for judicialization,” Valenzuela stated.
Valenzuela's local RIGI
The scheme provides that those companies investing more than USD 20 million and generating at least 100 jobs will be exempt from paying municipal fees during the first year. In the following 14 years, they will enjoy a 50% reduction in these charges.
Additionally, an intermediate benefit is planned for those who invest more than USD 10 million, who will receive a reduction in municipal fees for a period of 9 years.
In Tres de Febrero, companies pay the Safety and Hygiene Inspection Fee (TISH), the amount of which is determined based on the billing that each taxpayer declares.
Currently, Valenzuela explained, the municipal fee in Tres de Febrero stands at 0.6%, with a cap of 0.8%. If the municipality adheres to the RIGI, the highest-billing companies will pay only 0.4%.
For years, the municipality has had a system of tax credits that allows investments to be deducted from the payment of fees. For example, if an SME hires a new employee, it can deduct 50% of the minimum wage from its taxes. Now, the focus is on attracting larger-scale investments.
