The group of 6 (G6) asked provinces and municipalities to advance in a Low of tax pressure through the reduction of gross income and municipal rates. This business association said that the increase in these taxes “have become a local financing method rather than a effective consideration “.
The group of 6 (G6) is made up of trade in Buenos Aires (BCBA) and the Argentine Industrial Union (UIA).
The G6 stressed that “it is impossible to advance with sustainable and federal development, with the creation of quality employment and consumption recovery, if the provinces and municipalities They do not accompany the horizon of reduction of the tax burden raised by the National Government. “
In this context, the G6 remarked that while the gross income aliquot is determined by law in 1.5%, its “cascade” application can reach between 3 and 9%. As for theSasas municipal The G6 warned that the main problem is the lack of proportionality and the absence of individual consideration.
According to reports of the G6 member entities, only the safety and hygiene rate represents on average 34% of their own municipal resources and that can represent about 2% of the final value of a product. As gross income and stamps they explain 84% of tax revenues of provincial origin.
The G6 concluded that the operation of the provincial and municipal administrations cannot be at the expense of the productive and financial sectors.
The weight of taxes in provincial collection
A recent message in the social network X of the president of the Chamber of Deputies of the Nation, Martín Menem, unleashed a wave of criticism of accountants and business entities to the Gross Income Tax that the provinces charge. While tax aliquots are usually high and is considered as the most distorting of all, it is not an easy to remove. Explain 80% of the income of subnational states.
This is indicated by a report of the Mediterranean Foundation based on tax revenue data from 20 provinces to November last year. “The Provincial tax revenues fell 8 to 9% real annual, with a decrease of 10.6% in gross income, Its main tribute, ”says the report.
The importance of the controversial tribute in the provincial coffers makes it Impossible to eliminate it without a fiscal pact with the Nation, within the framework of an integral tax reform. The only chance is to transfer the value added tax (VAT). President Javier Milei had said in September last year when he went to Congress to present the 2025 budget that is the intention of his government to return the collection power to the provinces. Keep in mind that COnstitutionally they are preceded to the nation and have the faculty of origin to collect taxes. Strictly speaking, the nation has the power to collect only the “customs income”, so that the collection of taxes can be said that it is delegated in the federal state, which then distributes resources through federal co -participation.
As indicated by the Mediterranean report, 80.2% of the provincial own resources were generated last year from gross income; 7.4% through the stamp tax; 5.6%, real estate; 4%, cars patents and 2.7% other encumbrances. If the 2017 Fiscal Pact had been fulfilled that the governors had signed then with former President Mauricio Macri, he would not currently have imposed on gross income for productive activities, since he set a gradual reduction schedule that ended in 2023.
Source: Ambito
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