On December 21, the Senate passed the Social Solidarity and Productive Reactivation bill with 41 votes in favor, 23 against and 1 abstention, after a marathon 9-hour session. partially enacted on December 23, the law enables the Executive branch to adopt a number of tax, pension, financial, administrative, social and health measures, over the next 12 months in a context of national emergency. The key points of the measure are the following:

• Tax on financial assets held by Argentines abroad Incentive program: the elimination of the aliquot if assets are returned to the country.
• Elimination of the tax on savings in pesos.
• An extra 30% tax on purchases made in and of foreign currency as from the date of enactment of the law.
• Modification of withholding tax limits: 33% for soybean, wheat and corn, 8% for hydrocarbons and mining, 5% for agro-industrial products.
• Modification of the tariff scheme over the next 180 days.
• Application of 2015 personal gains taxation on personal assets.
• Change in pension formula over the next 180 days to which exceptions were added.
• Bonus payment for retirees currently on the minimum income.

The law was enacted on Monday, December 23, although partially vetoed by the Executive branch in an observation about article 52, saying that “in no case may the right to export hydrocarbons diminish the wellhead value for the calculation and payment of royalties to producing provinces.”

This observation constitutes a partial veto of the law and hence Congress is empowered to review its drafting. In this instance, the Legislative branch cannot incorporate any new provisions, but if it does not go along with the partial veto, it may resort to the possibility of insisting on the earlier text passed by the Senate this Saturday.