In the document, Signed by the Association of Banks (ABA), the Association of Public and Private Banks (ABAPPRA), the Association of Specialized Banking (Abe) and the Association of Argentine Banks (ADEBA) It was stressed that “the high distortive tax burden that affects financial activity is one of the factors that explain, despite the growth recorded in the last year, the low and decreasing level of loans in relation to GDP in the last 25 years” . Among the charges indicated, provincial taxes stand out for gross income (Iibb) and municipal fees, many of them considered excessive.
The statement also recalled that, at the national level, The Banking and Debit Tax, in force since 2001, has been subject to recurrent criticism by financial entities.
“Currently, LAs aliquots of provincial gross income and several municipal rates have reached historical levels due to recently registered increases, which represents a significant obstacle for the growth of credit and the viability of bank branches, ”said bank entities.
They also warned that the high Tax load directly impacts the people and companies that access credits or use financial services. “It is contradictory that it is the provincial and municipal jurisdictions themselves that, with these measures, hinder access and increase the cost of financial services for their inhabitants,” they said.
Banking associations made a called to provincial and municipal governments to implement policies that favor productive financing and the generation of employment in Argentina, with taxes that are reasonable and do not generate distortions. This request, embodied in a joint statement, adds to the complaints already expressed by the Argentine Chamber Fintech and Mercado Libre regarding the growing fiscal pressure in the financial sector.
The Fintech Chamber claim
The Argentine Chamber Fintech stressed that “the greatest obstacle to the digitalization of the economy is the fiscal weight applied to people and businesses that use electronic means of payment. ” They stressed that existing technological tools are accessible, easy to use and widely adopted, but warned that The viability of many companies is at risk due to the high tax burden.
For its part, Libre market described the Gross Income Tax as “unfair”, arguing that this gravel the total invoiced instead of the profits, generating a waterfall effect that makes prices more expensive. According to the company, these fiscal policies harm the productive, commercial sectors and consumers, underlining the need to move towards a more equitable tax system that prioritizes families, SMEs and producers to promote economic development.
From Ulá They expressed concern about the impact of the tax pressure generated by gross income, stating that this burden “hinders access to credit and consumption in Argentina.” As they pointed out, instead of promoting a favorable environment for growth and competitiveness, This tax increases production and services costs, negatively affecting both consumers and local businesses.
“We urge provincial governments to reconsider their fiscal policies with the aim of promoting the development of people, companies and the growth of their provinces. Gross income represents a barrier to the economic progress of Argentina,” they added from the company.
The provinces apply aliquots of Gross income ranging from 3% to 9% in financial services, directly impacting the commissions charged by virtual banks and walletss.
Source: Ambito
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