Government Orders Prepaid Companies to Reverse Fee Increases: Impact on Middle Class

2024-04-18 04:03:34

The Minister of Economy, Luis Caputocelebrated the provision that the increases that the prepaid companies must comply with and thanked the officials of the Ministry of Commerce.

“Great job Juan Pazo and Pablo Lavigne, using the institutional tools accordingly, and of course a great relief for the middle class”, he expressed on his social networks.

The questions by the owner of the Treasury Palace against prepaid companies began 10 days ago when he assured that “they were declaring war on the middle class”, after the increases in the fees they carried out since the Government of Javier Milei took office.

“Prepaid companies must drop prices sharply in accordance with the opinion of the National Commission for the Defense of Competition”, began the message from the head of the economic portfolio. “We, from the Government, are going to do everything in our power to defend the middle class,” the official wrote on his X account (former Twitter).

The government stops the increase in prepaid payments. (Photo: AdobeStock)

Prepaid companies must reverse the increases in fees

The Government ordered the prepaid medicine companies to retrograde quota prices to December 2023 and from that month onwards adjust their increases according to the Inflation index.

The presidential spokespersonManuel Adorni, explained that the measure was taken by the Ministry of Economy due to the presumption of cartelization of a group of companies that represents about 75% of affiliates.

Adorni also detailed that this group of companies must adjust to the Consumer Price Index (CPI) the prepaid installments for the next six months and clarified that “it is immediately applicable.”

“The fees that reach members must be backdated to December 2023, adjusted by CPI. “It will be a considerable reduction compared to what they paid in April.”remarked the President’s spokesperson.

That is to say, if an inflation of 10% is contemplated for the month of April and a 151% increase in prepaid medicine fees, it would be a reduction of 33%. In this way, companies should collect a fee in May that was not higher than 70% of that invoiced in December of last year.