For the governors, The proposal of the National Administration to pass them a part of the Value Added Tax (VAT) to the provinces within the framework of a total redefinition of the fiscal relationship, It doesn’t exist yet. Consider that the advance made by the Minister of Economy, Luis Caputo, A couple of weeks ago, It does not go through a media ad. In real terms, The Casa Rosada still did not give any role on the table yet To analyze.
A Provincial source, close to the government of La Libertad advancesconfirmed a Scope that President Javier Milei told the governors that idea a few months ago and that Nation was analyzing at least two projects. But after that, there was no more talk about the subject.
In concrete terms, It is impossible to pass a part of the collection with a single movement to the provinces -More exactly 12%- as Caputo anticipated. The resulting aliquot that each subnational status would have to charge to maintain the same amount of income he receives now, It can lead to absurdities as in some cases is 2%, while at the opposite end there are some that have to charge 71%, not counting 9% of the federal component.
That It is due to the great inequality of economies, that state that there are very rich states such as Buenos Aires, the City of Buenos Aires and Santa Fe, which could perfectly face the challenge, against other poor people who They would not have a chance to subsist with what would remain.
According to a recent study the Argentine Institute of Fiscal Analysis (Iaraf), The great challenge of “provincial VAT” would be first match conditions. One of them is that some provinces, The richest, contribute much more to the co -participation of what they later receive. On the other hand, for the least favored provinces, the situation is the other way around.
For example, the city of Buenos Aires could charge a VAT of only 2%, that added to the component of the nation, would give a total of 12%, but if a Buenos Aires crossed General Paz’s avenue towards Province of Buenos Aires, I would have to pay one of 16%, of which 6 points would be Buenos Aires.
That is, that Between two of the richest districts in Argentina the difference in favor of one would be 4 pointswhich would lead to, for example, neighbors living near CABA go on to make their purchases in the Federal District.
A Absurd case is that of Catamarca, which would have to charge a VAT of 81%of which 10 points would be national and 71 local points. Chaco would have to collect a total aliquot of 50%, of which 40 points would be own.
Córdoba, Chubut and Neuquén could have aliquots between 20 and 21% total, taking a federal 10 -point VAT, which would be living with Mendoza that would have one of 24%. Another case is to Formosa, which would have to apply a total aliquot of 57%.
VAT in provinces: what would have to be done previously
Alejandro Pegoraro, director of Politikon Chaco, He commented to the scope that the provinces are not in a position to receive that tax as good.
“It would be necessary to reorganize the tax registry,” Picorao explained. This refers to large companies that have a presence throughout the national territory, pay VAT in the City of Buenos Aires, because its centrals are in Federal Capital. Therefore it is possible that the high contribution that the district that governs the pro makes the co -participation, would blur if companies had to be recorded in each jurisdiction To contribute there, as they do with gross income.
The economist argues that “There should be a transition period”, Remembering that federal co -participation has a “Solidarity imprint” where the richest states contribute to improve the situation of the poorest.
“Provinces like Formosa, Chaco or Santiago del Estero can hardly compete with Córdoba or Santa Fe ”, He pointed out in the case of a hypothetical fight to attract investments between provinces.
In fact, Pegorao states that even if a north province could offer an investor a much lower VAT rate, this could decide to go to Córdoba or Buenos Aires, than While they would be charging higher taxes, they have much more developed infrastructure and logistics.
Source: Ambito
