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“The capacity to contribute is exhausted”: strong controversy between producers and Axel Kicillof’s government over the increase in a tariff

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The strong dispute continues between producers and Axel Kicillof’s government over the increase in rural real estate in the province of Buenos Aires.

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The new scale approved by the Buenos Aires parliament for rural properties, ranging from 140% to 200%, came into force in January, but producers warn that the invoices arrive with increases higher than those established, up to 500%.

From the Liaison Table of the province of Buenos Aires, composed of the Argentine Rural Society, the Argentine Agrarian Federation, Carbap and Coninagro, they asked governor Kicillof the postponement of the deadline of the first installment of rural properties, on which, according to the unions, there would be “an enormous amount of inconsistencies found in the tickets issued by ARBA”.

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“Such irregularities in many cases exceed the approved limits in the 2024 tax law for different sizes of rural establishments,” the entities said.

From the Liaison Table in Buenos Aires they said that if it is not corrected, “will be declared on alertgiven the inability of producers to cope with such increases.”

The contributory capacity of producers is exhaustedand any excessive increase will encourage action against what is considered a real outrage,” they warned.

The Province’s response

There is no such increase. There is nothing above 500%“, clarified sources from the Ministry of Agrarian Development of the province of Buenos Aires. “We have received the forms from the Agrarian Federation and Coninagro and it has been demonstrated that there has been no such increase”, they added.

It should be remembered that the Buenos Aires legislator approved increases based on the tax base. In the 2012 assessment, carried out at the time by former governor Daniel Scioli, a new tax base multiplied by 12.05% was assigned.

So The new rates remain as they are by law regarding the tax rate paid in 2023: 140% for land exempt from improvements up to $3,544,400; 180% between $3,544,400 and $8,127,288 inclusive; 190% between $8,127,288 and $19,986,324; and 200% of the tax value of $19,986,324 up to $198,940,000. Above $198,940,000 in taxable value there is no 200% limit (10% of manufacturers fall within this scale).

By way of clarification, the Ministry of Agrarian Development stated that “The limit of 200% applies to the compensation due.“.

According to what they revealed, eIn the province there are a total of 300,000 matches and the problem occurs in 2,000 items exceeding the tax base ($198,940,000) that have no limit.

Assembly

This Monday, an assembly with more than 100 producers was held in San Pedro to analyze the issue. There were producers from Suipacha, Colón, Peréz Millan, Carmen de Areco, San Antonio de Areco, Carabellas, San Pedro, Baradero, Pergamino, Ramallo, Bragado, Capitán Sarmiento, Salto, Arrecifes and Rojas.

The assembly members who attended the meeting asked for the “I refuse to pay this installment until the installments are brought back to a maximum increase of 200%, the discount for good compliance and automatic debit will be restored and the fifth installment, not yet implemented, will be eliminated”,

“If a favorable reaction does not occur, rural authorities are instructed to ask for a major reaction that also considers the situation of urban real estate and patents,” the statement added after the meeting.

Source: Clarin

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