Report calls for removing “tax pressure and mandatory contributions” to reduce food inflation. Targeting municipalities.
Of every $100 of a basic necessity product, up to $49.1 may be due to taxes, According to a report by the Argentine Chamber of Distributors and Wholesale Self-Service Stores (CADAM). They ask for “remove tax pressure and mandatory contributions that are not essential, to lower labor costs.”
The CADAM made a study about the tax burden in the chain marketing of basic necessities. Depending on the municipality, the total of national, provincial and municipal taxes varies between 38.1% and 49.1%. “We only have between 3 and 5% profit left“, the wholesalers complained.
Along these lines, CADAM asked the municipalities to “reverse the increases, Furthermore, they did so in the middle of the fiscal year, which complicates the projection of this burden that the companies had already calculated.” They also requested that the municipalities and provincial governments adhere to the new Regime of Fiscal Transparency for the Consumer.
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CADAM’s proposals to reduce food inflation
To achieve a greater reduction in food inflation, CADAM proposes eliminating the Check Tax, the reduction of VAT for basic basket products and provincial Gross Income. “It is a distorting tax, because the consumer pays it up to 3 times,” they say.
Another of the requests is related to the regulation of the labor reform. They insist that the Government eliminate the mandatory contribution of businesses to the Argentine Institute of Professional and Technological Training for Commerce (INACAP), because, they maintain, it increases labor costs. “It does not represent any benefit to the contributor or to the worker, if they decide not to train,” explains CADAM.
Source: Ambito
