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Excessive Rates: The Claim from Buenos Aires Farmers Under Fiscal Pressure

New Zealand 20.03.2025
Source: dairynews.today
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Farmers report excessive municipal taxes affecting production and demand greater transparency for regional development.
Excessive Rates: The Claim from Buenos Aires Farmers Under Fiscal Pressure
Farmers in Buenos Aires province express grave concerns about the mounting fiscal pressure from municipal taxes, which they assert have reached unsustainable levels.

According to a report by the Confederation of Rural Associations of Buenos Aires and La Pampa (CARBAP), led by Ignacio Kovarsky, the roadway tax along with other municipal charges have considerably hiked operational costs for wheat, soybean, livestock, and grain producers without corresponding improvements in services.

Buenos Aires has over 120,000 kilometers of rural dirt roads, essential for transporting more than 45 million tons of grain, 2,500 million liters of milk, and 15 million heads of livestock annually.

However, the inadequately maintained infrastructure threatens the livelihoods of numerous families.

The report highlights that the so-called roadway tax, initially intended for road maintenance, has increased by more than 40% in recent years since 2019.

It further details the disparity between tax burdens and service quality, with taxes often exceeding 4% of rental values.

Municipalities have also introduced new levies, like the 'mark and signal tax', set without technical justification or visible improvements.

Rural roads are vital to accessing essential services like schools and hospitals.

The degradation of these roads isolates communities, undermining their quality of life. Furthermore, the arbitrary collection of these taxes, without proper planning or oversight, leads to a pervasive feeling of neglect.

CARBAP calls for the establishment of clear guidelines for the imposition and application of municipal taxes, emphasizing the urgency of transparency and fiscal moderation to ensure sustainable regional development and an enhanced quality of life for rural communities.

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