The Lower House of Congress approved the electronic tax bill which grants tax exemptions to products manufactured in the southern province of Tierra del Fuego. The bill had been passed by the Senate in order to verify modifications.

The lawmakers approved the law passed by the Executive Brach by 126 positive votes over 7 and 54 abstentions.

The draft returned to the Lower House after the Senate analyzed the modifications two weeks ago.

The law increases taxes to electronic hardware from 10.5 to 21 percent. The project, however, would exempt products manufactured in the southern province of Tierra del Fuego.

Provincial governor Fabiana Ríos, of the centre-left ARI, has intensely lobbied in favour of the government sponsored bill. Critics have said that the government of Cristina Fernández de Kirchner would have offered this law to the ARI as a move to secure the support of two ARI lawmakers after the pro-government caucus loses its majority after the new lawmakers take office in December.

The project has been intensely resisted by shop owners and electronic companies as it would mean additional taxes in sector that is strategic for modernization. The sales of electronic products have plunged as a result of the international economic crisis.