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Argentina's Economy Minister Criticizes Sharp Tax Hike Impacting Meat Price

Argentina's Economy Minister, Luis Caputo, criticized the Cañuelas municipality for a sharp tax increase affecting meat prices. The Argentine Chamber of Butchers stated the tax hike is five times higher than inflation, harming the industry's competitiveness.


Argentina's Economy Minister Criticizes Sharp Tax Hike Impacting Meat Price

Argentina's Economy Minister, Luis Caputo, has criticized the municipality of Cañuelas for a sharp increase in a municipal property tax that is impacting the price of meat. In response to news that the Peronist mayor of the Buenos Aires province, Marisa Fassi, authorized a 124% increase in municipal permits in less than a year, Caputo directly targeted the measure. On his X account, citing a user's post with the data, he criticized that "the only thing they know how to do is raise taxes and they still have a deficit." The significant increase in the municipal tax was rejected by the Argentine Chamber of Butchers and Suppliers (CAMYA), which stated that the rate hike does not match inflation, as the municipal permit fee rose from $1,965 to $4,409, according to the Argentine News Agency. In this regard, they pointed out that prices in the same period rose by 24.8%, while the annual index was 31.3%, noting that "inflation grew by 25%, but the permit fee increased by 124%, five times more than the average price increase in the economy." They also stated that "the increase in the value of Cañuelas' municipal permits is not related to inflation, but rather is a decision to update with a disproportionate and regressive impact on companies that process meat for local consumption." In this sense, the entity argued that the increase reduces profitability, raises costs in the formal circuit, harms competitiveness, and increases the risk of informality in the meat marketing chain. In this context, they revealed that this increase was passed on to the meat supply chain, specifying that the higher cost led to an increase in the final price of meat, a reduction in the operating margin, and an adjustment in slaughter tariffs. Regarding the impact of the municipal tax on the activity, CAMYA explained that "it affects the butchery sector, as the use of permits is mandatory to move livestock to slaughter within the legal circuit" and emphasized that "its cost becomes a direct operational expense and affects the cost structure and competitiveness".

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