Within the framework of the law Bases, The Government raised and Congress confirmed, the Internal tax on tobacco to 73%, so cigarettes will increase their cost for consumersThe measure has already been ratified by the AFIP. And this is what complicates things. Pablo Otero, the businessman who owns Sarandí Tobacco Company.
By means of the General Resolution 5524/2024the AFIP approved the application program by which those who are affected by the internal tax on tobacco must carry out the operations, and which provides for the new tax.
The provisions of this general resolution will reportedly come into effect as of Tuesday, July 16, the day after its publication in the Official Gazette, and will apply to the submission of sworn declarations -original or corrective- that are made from that date.
Previously, the tax was 70% and now, with the changes foreseen in the Bases law, it has risen to 73%. In this way, the cost will be transferred to the price paid for the product at kiosks.
The internal tax on tobacco is what Tabacalera Sarandí, owned by Pablo Otero, does not pay because it has a precautionary measure in its favor. Thanks to this, the producer of brands such as Red Point, West, Master and Kiel does not pay the State thousands of millions of pesos in taxes, and also takes advantage of the opportunity to gain market share thanks to the fact that it sells cheaper due to this evasion.
Otero has managed to maintain market conditions that favor him, allowing him to absorb approximately 33% of the cigarette market. The businessman maintains that his company should not pay the minimum internal tax on cigarettes because it would be unfair given the economic capacity of the large tobacco conglomerates in Argentina.
Pablo Otero’s companies
Pablo Otero and his family own at least 19 companies around the world. In Argentina alone, they control Tabacalera Sarandí and Grupo Madero Sur, Global Race (linked to motor racing), Punt Vermell (show production) and Crossfinder (consulting and IT services).
Many of the companies are incorporated in the United States, Brazil, Panama and Saint Kitts and Nevis, where he also owns, together with various members of his family, several properties.
Brazil is one of the key centres of their investments: there they have the company Mercicler Importadora Ltd, founded in 2004, with which they are dedicated to the trade of tobacco and alcoholic beverages. Curiously, the address reported as the headquarters of the firm is a vacant lot in the city of São Paulo. Another striking fact is that several of their Brazilian companies were founded with the offshore company Centauro Mobility LLC, based in Charlestown, Saint Kitts and Nevis, considered a tax haven.
Together with Centauro Mobility LLC, Otero bought several companies in the United States, especially in Miami, and has a penthouse in Marina Palms Residences South and another in The Harbour South Condo.
Other companies there include Grupo Madero Sur Corp., Costa Brava Realty Corp, Auriga Holding Investments, Zona Sur LLC, Limitless Boundary USA LLC and Proterra Food Trading.
Source: Ambito
