Although the regulation contemplates some exceptions—such as social plans, interest from remunerated accounts, severance payments, insurance, reimbursements for promotions or loans—the perception is widespread.
The provincial Gross Income tax is widely criticized for its "cascading" nature, since it is applied at every stage of the marketing chain. In Buenos Aires province, it reaches 5% in some activities, a pressure that discourages formality and increases costs throughout the economy. This is compounded by advance withholding: although it is deducted in the monthly tax return, the reality is that thousands of taxpayers accumulate millions in credit balances that they never manage to recover, eroded by inflation. In practice, what is withheld becomes a hidden final payment.
In response to criticism, ARBA's executive director, Cristian Girard, denied that this is a new tax:
"In Buenos Aires province, there is no new tax nor has any existing tax been increased. No one who uses Mercado Pago to transfer money to their child, a friend, or a grandmother to buy medicine will have anything taken by ARBA. Only Gross Income taxpayers registered in the Province who sell goods or services will face withholdings when they receive payments through virtual wallets, just as if it were in a bank account," he stated.
