Chaco's governor announced a massive reduction in provincial taxes

The governor of Chaco, Leandro Zdero, presented an important set of fiscal measures this Monday at a press conference in the Salón Obligado with the aim of "relieving the tax burden and promoting the growth of the productive, industrial, and commercial sector".

Among the main proposals, Zdero, who recently agreed to an alliance with La Libertad Avanza of President Javier Milei, emphasized the gradual reduction of the Gross Income tax rate, the extension of tax exemptions, and the implementation of new incentives for various economic sectors.

Since he took office, Zdero highlighted that the provincial management is based on a model of "order and austerity", seeking to ensure, like Javier Milei at the national level, that "no more is spent than what is received".

In this context, he explained that these initiatives aim to create a favorable environment for the boost of the private sector, considering it the true engine of the provincial economy.

Tax reductions

One of the most notable announcements was the gradual reduction of the general Gross Income tax rate, which will decrease from 3.5% to 3.2% in 2025 and from 3.2% to 2.9% in 2026. With this measure, "Chaco will position itself among the three provinces with the lowest tax burden in the country", assured the governor.

Meanwhile, the rate for the primary sector, which is currently 0.75%, will be reduced to 0.50%, while the wholesale sector will begin to pay a 2.9% rate.

Another highlighted action was the extension of Law No. 4003-1, which exempts new taxpayers from paying Gross Income during their first year of activity.

This benefit, which was implemented in 2024, will be maintained for those who start activities in 2025. Additionally, the exemption from paying the employer contribution to the Public Health Fund for private sector companies will be extended.

In response to the difficulties faced by the productive and primary sector, Zdero announced the creation of an agricultural exchange, with a reduced Gross Income rate for the sale of primary products received in exchange. Likewise, the rate for insurance producers will decrease from 5.5% to 3.5%.

Finally, the exemption from the rural property tax for producers with up to 1,000 hectares will be expanded during 2025, benefiting a greater number of workers in the sector.

In response to a social demand, the provincial government decided to eliminate the application of VAT in the calculation of rents. Additionally, a 0 rate will be implemented for rents that do not exceed two minimum living and mobile wages, while those that exceed this threshold will see their tax burden reduced from 1.5% to 0.5%.

For commercial rents, the Gross Income tax rate will be reduced from 1.5% to 1%, with the aim of promoting economic and commercial activity in the province.

Zdero described this day as a "historic day" for the province, emphasizing that these measures seek to generate a positive impact on the local economy.

"We are advancing in tax relief and consolidating the growth of the private sector because it is the true engine for generating wealth and genuine work in our province", expressed the Chaco leader. The package of measures will be sent to the provincial Chamber of Deputies for analysis and eventual approval.