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Buenos Aires Industry Moves to Curb Gross Receipts Tax After Study Shows Triple Burden

New estimates highlight a cascade tax raising prices.

Overview

  • The Buenos Aires industrial chamber UIPBA reported an effective Gross Receipts tax load of 4.7% on industry value added in the province versus a 1.5% legal rate, higher than in Santa Fe and Córdoba.
  • UIPBA is drafting a proposal for Governor Axel Kicillof to cut the tax’s impact gradually without reducing revenue and is weighing court action against municipal charges tied to sales.
  • The latest sector study for dairy by CEPP for CIL found taxes average about 38% of final shelf prices, with Gross Receipts the largest weight and export rebates removed since 2024 now set at 0%.
  • Firms face prepayments through provincial withholding and the Sircreb system that skims bank credits, which creates hard‑to‑recover tax credits and drains working capital.
  • Analysts note provinces rely on this levy for a large share of income and say its multi‑stage “cascade” design lifts consumer prices, with Buenos Aires collecting a sizable share of nationwide receipts.