Ingresos Brutos - Oficina de Presupuesto del Congreso

TAX BURDEN ON PRODUCTIVE ACTIVITY. MAIN RESULTS

by Juan Fourcaud | Dec 3, 2020 | Tax Policy and Fiscal Federalism

The purpose of this report is to evaluate the consolidated tax burden on the meatpacking, metal-mechanic, supermarket, transportation, and hotel sectors in thirty locations in the country.

Under certain assumptions and without including some taxes such as Fuel Taxes or Export Duties, the average tax burden is equivalent to 12% of the companies’ turnover.

There is an important tax burden dispersion by activity and location. From a minimum of 7.5% of the total turnover for a meat packing activity carried out by an SME in the city of San Luis, to a maximum of 17.3% for a large hotel in Bariloche.
There are also differences in the tax burden depending on whether it is a small or large company and between firms in the same industry: from 25% in hotels to 50% in the meat packing sector.
There is double or triple taxation due to the overlapping of taxes, which makes it difficult to know the real cost that the productive sectors face.
This study refers to a tax burden baseline and is limited by the lack of information requested from chambers of commerce and municipalities, but which was not provided.

Progress Status of the 2017 Fiscal Consensus – 2019 update

by Nicolas Perez | Dec 12, 2019 | Tax Policy and Fiscal Federalism

Although with variations by jurisdictions, progress was made in the amendments to the provincial taxes included in the 2017 Fiscal Consensus.

There is a high level of compliance with the commitments assumed to lighten the burden of Gross Income Tax and to homogenize it.

All provinces involved made progress in excluding exports from the scope of this tax which, however, in some jurisdictions a higher rate was applied to certain commercial activities.

There was also a high level of compliance with the commitments related to the Stamp Tax, which eliminates differentiated treatments, prevents the raising of rates for certain activities and foresees a reduction schedule, which was finally suspended.

Tax revenue in the committed provinces did not have a significantly different dynamic. Gross Income tax rose 10 percentage points above the nominal growth recorded in the jurisdictions that did not adhere, but Stamps and Property Taxes, on the other hand, grew less.