The Government will launch a value chain study of three products from the basic basket with the purpose to clarify how much taxes impact the final price to the consumer. The measure is analyzed by the Undersecretariat of Consumer Defense and has the support of SME entrepreneurs.
As he was able to find out Ambit, It’s about putting white on black, How much of what people pay at the counter or on the shelves is made up of taxes and thus putting into debate the reduction of fiscal pressure. The three chains chosen will be well differentiated in different areas of the country.
The final idea is to show the amount of taxes that people pay without knowing it when they consume and thus promote the discussion on the need to lower the legal tax pressure.
According to private studies, in addition of the most recognized Value Added Tax (VAT) which impacts 21% on the final value, the other tax in question is the Tax on the Gross Income collected by the provinces.
That cascading tax, adds at least 10% to the final value. Unlike VAT that is ultimately paid by the final consumer, Gross Income is added to each invoice in the chain. Added to this are some products that have internal taxes, as in the case of alcoholic beverages.
A study carried out by the Argentine Institute of Fiscal Analysis (IARAF) had measured in 2017 that the final weight of taxes in the final price of the goods was 44%. That margin is estimated to have been maintained, and may even have increased.
Salvador Femenia, spokesperson for the Argentine Confederation of Medium Enterprises (CAME), He points out that the entity is beginning to carry out an investigation of this type. “Measured well, from when the raw material leaves until it reaches the consumer, the impact of taxes is very great,” he explained. The manager pointed out that having the information “decisions can be made” and that it can also be discerned if the margins added at each stage are exaggerated.
In 2023 the tax pressure fell
According to the IARAF, the national effective tax pressure, understood as national collection in terms of GDP, would be located at a level of 22.8% of GDP, which would imply a decrease of 1.4 percentage points compared to 2022. That is because revenue fell, not because tax rates have dropped.
However, in eThis annual collection implies the impact of the severe drought that affected the countryby excluding from the analysis the taxes associated with foreign trade (export duties, import duties and COUNTRY tax), the internal tax pressure would rise to 20.5% and would have a decrease of 0.5 points compared to 2022.
The tax with the highest increaseThe effective pressure would be the VAT, with a growth of 0.8 points of GDP (mainly due to tax administration measures) and COUNTRY tax with an increase of 0.38 points of GDP.
Taxes on credits and debits in current accounts, social security, internal co-participation, Personal Property and import duties practically do not register significant variations.
At the other extreme are fuels, export duties and Profits as those taxes that had the greatest decrease in importance relative to GDP.
Fiscal darkness
In Argentina you cannot discriminate against the Value Added Tax to final consumers. In fact, there is a resolution in force since 1997, signed by Carlos Silvani, who was the first Federal administrator of Public Revenues, which establishes that in order to do so, the registered managers have to ask permission from the organization.
The radical deputy and economist Martin Tetaz recently presented a bill to reverse this situation.
Source: Ambito
