a dozen of rural societies of the province of Formosa expressed their resounding rejection of the recent update of tax values for agricultural products implemented by the provincial tax administration. The measure, established by the general resolution 17/2024increased tax values by 3000% since June 3, which was described by producers as “untimely” and a “new blow” in a context already complicated by inclement weather and the economic crisis.
The rural societies of Pilcomayo, Formosa, Fontana, Pirané, Colorado, Clorinda, Las Lomitas, Pozo del Tigre, Villa General Güemes and San Martín No. 2, indicated their discomfort through a joint document.
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In that sense, they highlighted that producers in the region faced successive climate emergencies that significantly affected their working capital. “Added to the recurring crisis, this update of fiscal values, in high percentages, almost ten times what was being taxedpresupposes a new blow to producer that must face a new cost,” they indicated.
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In addition to rejecting the tax modification, the producers formulated a series of requests to the provincial government of Gildo Insfrán. In particular, they urged that a portion of the revenue generated by the new resolution be allocated to improving essential infrastructure for the agricultural sector. “It is essential to invest in roads, electricity networks, water management of canals and channels, connectivity, etc.,” they stressed.
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Likewise, the ruralistas also asked for improvements in the local tax administration offices in each town in the province. They consider it important that these offices receive the necessary investments to offer an agile and modern service, which would benefit operations without hindering it. “Efficiency in tax management is key to not adding more obstacles to the producers,” they noted.
Gildo Insfrán, governor of the province of Formosa. (Photo: Facebook @GildoInsfranGobernador).
Formosa producers ask to review the table of tax values because “it does not reflect reality”
“It is necessary that the table is representative of the reality of the Formosa field“, they indicated. And they pointed out that the current situation generates unfair contributions that disproportionately affect producers.
Meanwhile, in a recent hearing granted by the Formosa Tax Administration and the Ministry of Production, the producers were grateful for the opportunity to raise their concerns. During the meeting, the different points of view and the consequences of general resolution 17/2024 were discussed. “Resulted in a commitment from both parties to work together to achieve better distributive equity,” reported the agricultural representatives.
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In this context, the Confederation of Rural Societies of Chaco and Formosa (Cha-For) also expressed his support for the claim of the Formosa producers. In a statement signed by its president, Guillermo Martínez Balbisand his secretary, Oscar Cardozothe entity expressed its adherence to the concepts expressed in the document issued by the rural societies of Formosa.
Cha-For stressed that the new tax determinations especially harm small and medium producers, who represent 80% of the sector. In a severe tone, Martínez denounced that, through Resolution No. 17/2024, “the Formosa Tax Administration increased the tax values by 3000% since June 3”.
Guillermo Martínez Balbis, president of the Confederation of Rural Societies of Chaco and Formosa (Cha-For). (Photo: Always Formosa).
At the same time, Jorge Humberto Verdia rural producer from Formosa and former president of the Confederation of Rural Societies of Chaco and Formosa (Cha-For), pointed out that the problem does not lie only in the percentage increases in taxes, but also in the base values on which they are calculated.
Verdi highlighted that the cost to process the Electronic Transit Document (DTE) for the transportation of property increased significantly, “adding an additional financial burden to already affected producers.”
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Finally, Verdi expressed concern about the lack of effective dialogue between rural entities and the provincial government. “Officials seem to follow the premise of ‘they listen to you but then make you pay’“, he claimed.
Likewise, he argued that investing part of the money collected in infrastructure is not enough, since producers are in an unsustainable situation in the face of the new tax burden.
“What worries us is that, just as happened with the update of tax values for products, the provincial government comes for the tax valuation of the fields”Verdi concluded.
