The national government implemented tax changes that will affect the resources that provinces receive, raising concerns among governors. The Undersecretary of Public Revenues of La Pampa, Alejandro Vicente, mentioned that these changes could condition the fiscal policy of the provinces for a long period. He explained that a situation similar to that in 2017 can be observed when former president Mauricio Macri took measures that affected provincial funds.
According to Vicente, the latest decisions by ARCA have reduced the revenue of the provinces, which may complicate payments in some jurisdictions. Although La Pampa is not in a critical situation, there is fear of possible additional measures that may exacerbate the situation. Governors are expected to raise complaints to prevent the decrease in revenue from continuing.
The measures adopted by ARCA will directly affect the provinces, causing them to lose around a trillion pesos. Among the changes made is a new scheme for annual income tax advances for large companies and a modification in VAT withholdings on customs operations. These decisions are part of a set of measures aimed at reducing the automatically distributed shared revenue for the provinces.
The complaint was filed by the government of La Pampa during a meeting of governors in Entre Ríos, where Governor Sergio Ziliotto criticized the management of shared funds. The meeting brought together various authorities to discuss the challenges of productive development in the country, with a federal focus. In general, provincial leaders accuse the national government of trying to control the provinces through cuts in shared revenue.
Undersecretary Alejandro Vicente pointed out that these measures will significantly harm the revenue of the provinces, especially at a time when many of them need those funds to keep their monthly payments up to date. Vicente expressed his concern about the possible long-term consequences of these decisions and the lack of alternative resources in the face of decreased income from royalties and other sources of financing.
