24 December 2021

Argentine meat suffers from inflation. The Federación de Industrias Frigoríficas Regionales Argentinas (FIERA) is one of the main associations of slaughterers in the South American country. And FIFRA is asking the government to reduce taxes on meat and to introduce incentives for the supply chain. The concern is that, in the current context, meat has shown the largest increases in prices, on which VAT would be the main component. Report by La Conceria




Argentine meat suffers from inflation
Daniel Urcia, at the FIFRA management for the factories in the regions of Cordoba, Santa Fe and Entre Rios, refers to the FADA (Fundación Agropecuaria para el Desarrollo de Argentina) data. On the basis of these, he argues that “the taxman represents the largest share in the composition of prices, that is, 30%”. The other shares refer (in ascending order) to industry (7%), retail trade (13%), livestock (25%) and slaughter (25%). In an editorial, the anager complains about the risks that the meat sector runs in the face of the burden of taxes, which depend on rules that the association is now asking to review.

Old tax schemes
“The Congress – continues Urcia – is working on the Law of Budget. The legislative times will not be enough for the equalization of the VAT rate in the slaughtering service. Therefore, for another year, the adjustment will not be made, and the technical VAT will continue to accumulate in the slaughterhouses“. According to the FIFRA representative, all this will lead to a further increase in final prices. The slaughterers association asks that a simplified regime be drawn up for them, and the elimination of taxes dating back to the civil code of 1869. Among the activities that no longer need protectionism is the export of raw hides, burdened by outdated tax schemes.

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