Hotels and gastronomy advocate the restructuring of the tax system

The event that each year brings together the sector to discuss the tax issues that affect it had several axes of debate, but the center was the country’s tax structure.

“We advocate for a more equitable, more horizontal, simple and egalitarian system, reiterating the elimination of distorting or heterodox taxes and making it more predictable.” This conclusion, it can be said, summarizes the central axis of the debate carried out within the framework of the XXI Hotel-Gastronomic Tax Colloquium.

The traditional event organized every year by the Hotel and Gastronomic Business Federation of the Argentine Republic (FEHGRA), held in Ushuaia, Tierra del Fuego, was developed under the motto “Towards a tax system for development, growth and full employment.”

More than 120 tax advisors and leaders of its 57 associated entities participated and it was led by the vice president of the Federation, Rafael Miranda, and the members of the Tax Policy Department of the federation. It had the contribution of prominent professionals and tax experts.

Many of the topics that make up the conclusions of this colloquium return to issues and guidelines that constitute a constant of the entity such as unfair competition; the reformulation of the Value Added Tax rate to improve competitiveness and align internationally; the elimination of Gross Income, among other issues, whose position was conveyed to the authorities of the different governments.

Thus, the professionals and leaders who participated in the analysis and debate of the different issues reached conclusions, of which the main aspects are highlighted.

tax system

The sector’s greatest concern focuses first on the tax system.

In this sense, they argue that the Argentine tax system is unsustainable, threatens sustainability, is not very transparent, complex and changing, with a very high tax pressure and a significant compliance cost on the part of taxpayers, which generates high tax evasion. .

A restructuring of the Argentine tax system is necessary, eliminating distorting or heterodox taxes, which, among other negative effects, cause significant competitive disadvantages. The Gross Income Tax, the Tax on Bank Debits and Credits, the PAIS Tax, the Export Duties, and the different municipal taxes without compensation stand out, all of them non-existent in other countries.

Therefore, a profound tax reform is required, with a bold and modern approach, emphasizing the competitiveness of companies and predictability, replacing bad taxes (such as those mentioned) with good taxes.

Of course, these changes must be made, in addition to the reduction in public spending, the entity highlights.

Gross Income

Perhaps the Tax on Gross Income is the tax most questioned by all sectors: commerce, industry or services, which prompted the inclusion of the recommendation of its elimination because they consider that it causes a significant impact on the competitiveness of companies as a result of its pyramiding. And they propose its replacement with a tax on final sales, coordinating the three levels of government and eliminating tax overlap.

Value Added Tax

The sector considers, not just now but for years, that it suffers an important difference in the treatment of VAT using comparative law. On this occasion they mention Europe as an example, where the general rate is 21%, hotels and gastronomy are taxed with the reduced rate of 10%, while in Argentina the general rate is applied, that is, 21%.

Tax transparency

The event celebrated all regulations aimed at making the tax burden transparent and promoting the population’s fiscal awareness, hence the consumer tax transparency regime that promotes the discrimination of national indirect taxes in operations carried out with final consumers is considered appropriate.

unfair competition

Regarding this point, which also entails tax effects, FEHGRA states that it is not opposed to new accommodation modalities, but it is opposed to tax, tax and administrative inequity, which arises from the same activity.

All types of authorized accommodation have the heavy backpack of taxes, other taxes and administrative burden, while Temporary Tourist Accommodations (ATT) barely pay a minimum of what the formal activity does, benefiting in turn from the promotions they carry out. governments to promote tourism in destinations.

Finally, they echo the restructuring of the tax administration, pointing out the criterion of the existence of a single agency