Argentina: For every two bites of a peach, almost one is gobbled up by the state in taxes

Published 2021년 6월 6일

Tridge summary

A study by the Argentine Confederation of the Medium Company (CAME) reveals the distribution of costs, taxes, and profits in the value chain of fresh peaches sold in Buenos Aires, Argentina. The study finds that taxes make up 44.8% of the consumer price, with the primary producer receiving only 12.8%. Other linkages in the value chain, such as packing sheds, cold chambers, wholesalers, and retailers, receive 15.8%, 15.8%, 10.9%, and 15.7% of the price, respectively. The study also highlights the impact of taxes, accounting for 75.1% of the final price, with VAT, profits, provincial or municipal taxes, gross income, and employer contributions being specific taxes in the value chain. This high tax burden negatively affects the profitability of agri-food products, particularly peaches, and hinders investment.

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Original content

Taxes explain 44.8% of the price paid by the consumer for a kilo of fresh peach, while the primary producer only receives 12.8% of the final price, indicated a study prepared by the Regional Economies sector of the Argentine Confederation of the Medium Company (CAME). After analyzing the costs, taxes and net profits of each link, the conclusion of this work was that of the 210.8 pesos in which a kilo of fresh peach was sold in the Federal Capital - average price of March 2021-, the producer explained 12.8% (27 pesos); the packing shed and the cold chamber 15.8% (33.4 pesos); the wholesaler –store in the Central Market of Buenos Aires– 10.9% (23 pesos); and the retailer –greengrocery store and hypermarket of Capital Federal– 15.7% (33.1 pesos). For its part, the tax burden of the State, in its three levels, amounts to 44.8% (94.3 pesos). "Once again, the weight of the State is exposed: 75.1% are taxes of national origin, while 24.9% are provincial or municipal taxes," explained the ...

Source: Bichos de campo