Buenos Aires Minister Criticizes Tax Reduction Initiative

The Minister of Government of Buenos Aires, Carlos Bianco, on Monday criticized the political offensive of La Libertad Avanza to reduce or eliminate municipal taxes in districts of the province of Buenos Aires. He stated that the problems of employment, competitiveness, and business closures “have nothing to do with municipal taxes or provincial taxes,” but rather with the economic policies of the national government. The official made these statements at a press conference in the Government House of La Plata. Bianco questioned the initiative promoted by La Libertad Avanza councilors in 116 municipalities of Buenos Aires. The minister emphasized that available data show that the weight of municipal taxes on productive activity is marginal compared to national taxes. In this regard, he cited a report from the Argentine Agropecuary Development Foundation (FADA), which states that 93.6% of the tax burden on agricultural production corresponds to national taxes. He also mentioned a study by the Faculty of Economic Sciences of the National University of La Plata (UNLP) indicating that municipal taxes represent only 0.9% in the value chains. “The problem of unemployment, the death of companies, and the lack of competitiveness has nothing to do with municipal taxes or provincial taxes,” affirmed the official. He attributed the economic difficulties to “the economic policies of the national government,” among which he mentioned the exchange rate appreciation, the opening of imports, and the signing of agreements that benefit some sectors while incomes fall. “We ask the national government and its councilors to stop lying and carrying out distraction operations,” Bianco stated, and added: “Work on bills or ordinances that favor and do not destroy production.” During the conference, the minister also referred to the fiscal situation of the province and highlighted the closure of wage agreements with state unions. “We were able to close the collective bargaining in the province, and we thank the unions for that,” he pointed out, although he warned that “all workers in Argentina are going through a very complex situation in terms of salary.” The official also described a scenario of economic difficulties for the Buenos Aires administration and stated that the province stopped receiving national resources for an amount close to 22 trillion pesos, which is equivalent to “half the annual budget.” On the other hand, Bianco referred to the proposal promoted by a sector of Peronism to form a broad opposition front against President Javier Milei for the upcoming electoral cycle. The minister indicated that the idea of expanding the political space is already part of internal discussions and stated that it is “something we have been proposing for a long time.” “We work very well with the traditional electoral system,” he maintained, and recalled that in the province the primaries were suspended only for one year, but they remain in force. The official also anticipated that in the coming months the issue of the re-election of mayors could be debated again, a topic that, he said, different political forces have raised again in legislative conversations. “It will be a discussion that will take place in the coming months,” he indicated, and added that beyond political differences, there are common points among sectors of the so-called popular field, especially in the need to promote a country model based on production and work. “There are many common points among different progressive forces in an agenda that puts production and work at the center, and not financial speculation,” he concluded. In turn, the Minister of Production, Augusto Costa, presented a balance of the tourist season and warned that there were fewer visitors, shorter stays, and a lower level of spending in the Buenos Aires destinations. He detailed that between December 1 and March 4, the province received 8.7 million tourists, representing a 5% drop compared to the previous summer. However, the official emphasized that a more worrying comparison arises against the period prior to President Javier Milei's assumption. If compared with the season before Milei's arrival, the drop is even greater: consumption was reduced by a third and spending on the Atlantic coast fell by almost 40%. “There were fewer tourists, and those who came did so in an absolutely gas-guzzling way,” described Costa, and detailed that many visitors avoided expenses such as restaurants, theater, or tent rentals and opted to bring food from their homes. The minister also presented data on the evolution of economic activity in the province during 2025. The length of stay in Buenos Aires destinations fell by 5% compared to last year and 6% compared to the season before Milei's assumption, and currently averages between three and four days. The minister described the phenomenon as “a getaway tourism,” characterized by last-minute decisions conditioned by the weather or promotions. “If none of those conditions are met, people stay at home,” he explained, and warned that this dynamic affects the predictability that tourism operators need to plan the season. The consumption data also reflect a strong contraction. “These are discussions we will have to have: advance or not the elections or the implementation of the Single Ballot,” he stated. On that point, Bianco affirmed that the position of the Buenos Aires government is to maintain the current scheme. “We lost 1,260,000 tourists who did not visit the province of Buenos Aires this summer,” he stated. The minister indicated that some of these travelers opted for destinations abroad, which he linked to “the lagged exchange rate that makes local destinations more expensive” and what he defined as “a deliberate policy to promote trips abroad.” He also maintained that the withdrawal of tourism support programs impacted the activity. According to a survey by Banco Provincia in 28 tourist destinations, average spending fell by 24% in the entire province and 29% on the Atlantic coast compared to last summer. “Most of those who did not come did so because they chose another destination, but because they did not have the resources to leave their home and take a few days off,” he affirmed, and added that 60% of families declared they have no savings or purchasing power to vacation. According to Costa, the average stay of visitors also decreased. “We are at the limit of a serious process of difficulties in maintaining payment chains in the industrial sector,” he stated. According to the data presented, in the province there are 5,498 fewer productive units, almost 80,000 formal jobs were lost until November, and production faces a very complex scenario. “Unlike what Milei says, it is not the fault of crony businessmen, inefficient industrialists, or lazy workers: it is Milei and his economic policy,” concluded Costa. Meanwhile, Díaz stated that “the inequalities that affect working women and gender-based violence are denied by the national government, an anti-rights and denialist government” and added: “We denounce it, because we are concerned, and we work from the province on policies that are at the opposite extremes.” Then, she stated that “inequality in work is historical, but labor reform will worsen all those inequities” and added: “When the State withdraws, life is more difficult; that is why in the province we believe in a present State that believes that the only possible freedom is with greater justice and equality.” In this sense, she considered it necessary “to build an alternative for 2027 by expanding the borders of our space.” When asked about the renewal of authorities of the Buenos Aires Peronist Party, the official stated: “A unity list for the presidency was achieved, with the governor as president and the vice-governor as vice,” he added that “in 18 districts of the province there will be elections between different lists” and completed: “I don't know if the unity is total or partial, everyone made efforts and put will to be able to achieve a single list at the provincial level.” “The same thing is starting to happen that already occurs in other provinces where a Peronist governs and leads the party. According to the report, the Buenos Aires economy registered a growth of 2.2%, although this performance represents half of the growth recorded at the national level by the Monthly Estimator of Economic Activity (EMAE). Even so, activity remains 1.5% below 2023 levels, and the minister recalled that the economy had previously suffered a 5.5% contraction after the arrival of the current national government. When analyzing the different sectors, he explained that the only activity that has grown since 2023 was rural, with a 32% increase after the drought, while the three sectors with the greatest weight in the provincial economy registered sharp falls: industry (-8%), commerce (-21%), and construction (-21%). “There is a productive crisis that is ravaging the province in all regions,” he stated. In the case of the automotive industry, he detailed that seven out of every ten production lines are paralyzed, a situation that is also replicated in other industrial sectors. In addition, he warned that half of the companies have serious difficulties paying taxes, salaries, suppliers, and services, which puts payment chains at risk. Governor Kicillof had not run to lead the party; they asked him, and he set minimum conditions.