They warn about the negative impact that the increase from 70% to 75% of the internal tax rate will have, included in the modification made by the National Executive Branch in the “Bases Law” project.
The Chamber of the Tobacco Industry (CIT) and the Argentine National Chamber of Tobacco Companies (CANET) together with the Chamber of Tobacco Distributors of the Argentine Republic (CDT) are located in alert for a modification to the initial proposal made by the National Executive Branch in the draft Law “Bases and Starting Points for the Freedom of Argentines” in which the increase in taxes on the sector, from 70% to 75%.
In a joint statement, the representatives of the sector point out that “the so-called Omnibus Law increased the Internal Tax on cigarettes from 70% to 73%; an already controversial decision for a sector that maintains 80% tax pressure on the final price of its product, but that had generated a certain consensus in the value chain. Now in a decision without consultation, the national government has decided to deepen the increase in the internal tax rate, taking it to 75%.”
A decision that will affect investment projects and the generation of genuine employment
From the Chamber of the Tobacco Industry They consider that “this decision will affect investment projects, the generation of genuine employment and will harm the fiscal contribution and the distribution of funds to the provinces.”
For its part, from the Chamber of Tobacco Distributors declared “we support the majority opinion of the omnibus law, in relation to the chapter of internal taxes on tobacco, which eliminates the minimum tax with the objective of establishing equal tax conditions for all the products we distribute. However, the modifications to the ruling that would include an increase from 73% to 75% will be very negative since they will affect prices, profitability and our level of activity.”
Source: Ambito
