- The national government may keep a 9 percent federal VAT and give 12 percent to subnational states.
- Most provinces would need to charge a higher rate to avoid losing revenue due to federal revenue sharing.
- Only three provinces could effectively compete by lowering taxes: Buenos Aires City, Buenos Aires Province, and Santa Fe.
- The proposal faces skepticism as 16 provinces would need to charge above the national average to maintain current funds.
- Mendoza, Neuquén, Córdoba, Entre Ríos, and Santa Cruz could maintain a 12 percent VAT without losing revenue.
Source: ambito.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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