• Sun. Mar 3rd, 2024

Agricultural Producers in Buenos Aires Launch Legal Battle Against New Tax on Essential Services: Constitutionality Challenged and Livelihoods Threatened


Feb 13, 2024
Buenos Aires Mayor Enacts New Rate, Prompts Producers to File Injunction

A group of agricultural producers in Buenos Aires have launched a legal battle against a new tax on essential services created by the town’s mayor, Nelsón Sombra. The producers filed a claim seeking protection to suspend payment of the new rate and challenge its constitutionality after discussions with various councilors and the incoming mayor failed to prevent its passage.

The rate, which began being collected in January, imposed a heavy tax burden on agricultural producers who collectively filed a joint claim with the Justice. A separate group of producers also initiated legal action to stop the tax. The producers resisted the rate, with only a fraction of the total expected revenue received and concerns about the cumbersome procedure for payment.

The original rate was conceived as an equivalent of one liter of diesel per month per hectare and two liters of diesel per field, with proceeds intended for covering various services like health, education, sports, and transportation. However, modifications were made following significant pressure from producers and residents. The revised rates varied according to location and ranged from two liters of diesel to half a liter of diesel per month per hectare.

In response to their legal action, the rural society obtained their desired result and suspended payment of the new rates while challenging their constitutionality. Simultaneously, residents were considering the implications of paying closing costs on cash purchases, prompting individuals to seek advice before making such transactions.

The Azul town’s producers’ legal battle highlights their concerns over taxes that they believe impose an unfair burden on them while affecting their livelihoods negatively. Their move has raised questions about whether such taxes are constitutional and whether they serve as an effective means for providing essential services in towns like Azul.

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