1) You say that 1/3 of revenues are from workers withholdings and then say only a small number comply. From a quick google about 800k-1M pay income tax. or about 10% of the formal workforce (are the high earners). The fact is in the US only 50% pay federal tax because their income is too low as well. Its not really different globally, just a bit more skewed here but not unexpected amongst other developing nations. The professionals and higher earners do in fact pay. And certain industries pay their employees well above the averages (mining). Again, the point is to get them registered then in the system if they aren't paying anything anyways. The issue is that with that comes more overheads for pension/medical etc. The fact that the governments budgets are balanced currently, indicates there isn't massive amounts of new funds required. Yes they need to start projects again which are coming through loans from Interdevelopment Bank, and negotiations with the governors etc. In the future, if they can maintain responsible governance they can return to debt issuance to manage slight deficits like every other country.
2) My point is that the tax reform needs to transfer the source of taxes for provincial services from Gross Sales based to shared income tax or institute a real property (or land value) tax. These gross taxes are a huge component 5% of sales vs profits. This is why I am saying instead of them coming from businesses it should be coming from property owners. It can get passed on to tenants. No problem with that as it is a cost to operating/owning the unit. Does property tax not cover education, health care, police, garbage collection in the US and other jurisdictions?
3) IVA - this is an interesting one here, because it should be based on the category of good or service not just the type of business structure offering it (monotributos don't need to pay IVA to government but SAS, SRL, SA do). Nevertheless, I believe by issuing a Factura E invoice for sales to foreign entities you do not need to pay IVA. Factura E can be issued by monotributos also. But yes agreed, exports shouldn't be charging IVA.
Shipping
Yes I have used brokers etc in the country. Freight is far cheaper with actual logistics companies at less than $10/kg instead of the $40-50/kg quotes by the retail companies. Shipping large containers for up to 24t can cost ,$6k depending on source/destination. If you are located near BA or ports then your in country logistics will also be reduced. Different industries have different importation rights etc.
Yes the import duties benefit the industrial base here, They are protectionist policies that raise the cost (no difference than anywhere else in the world that implement them). This is part of the issue with the textile industry. It was very well protected.
The agriculture industry isn't charged export tax as I understand but rather a withholdings on the money coming in. I guess that is essentially the same. But the governments often offer windows of exemptions or lower withholdings, and they also offer them a different exchange rate. The larger producers that make up I think like 80% of the market have huge silos and warehousing capacity, so they often wait for these periods to get the benefits (similar to around election time).
The price for the Argentinian made goods all fall on the higher end of the spectrum, regardless of reason someone may buy them (fashion or technical need). Amongst the reason why is literally you mentioned in your post of the taxes and importing costs (do they use YKK zippers or a national brand?). What people are willing to pay will set the value particularly for non-necessity items. This is no different than Canada Goose jackets going for 1000s and then going for cheaper when people don't have the disposable income anymore, or cheaper versions of similar quality come out. Look at Lulelemon getting smashed with lower demand for their goods with people buying direct from China now through Aliexpress, Temu etc.
I think in Canada you can go to costco and get Levi's 505 jeans for $30, so about $22 USD. Kirkland branded for $20-30 CAD ($15-22USD). You will not find anything remotely close for the price here. Yes that is costco not a fashion house, but still between them, Target, Walmart, Marshalls, Winners, etc there is ample clothing distributors at affordable prices. Here I find much thinner denims, and the stitching to be far weaker. Yes there are some brands that make better quality, but I am talking about widely and easily available good quality. And since those brands similar to what you have mentioned do exist here, it is not impossible. It just comes a point in time when the business owners resign to the fact that the old protectionist policies are gone, at least for their industry, and embrance it. Like I mentioned before, it is not uncommon for coal mine owners or other miners to suggest that they will have to shut down due to environmental policy, taxation, other fees, etc and then the governments typically cave in or provide some incentives etc. Same with car manufacturing etc. Here, the textile owners are doing this to see if the government will flinch. If not, they will adapt. In the meantime, some will lose their job. And I know that sounds cold, and I really do feel sorry for the workers that lose their job. But it is a reality of changing economy. When Walmart was growing, how many small business closed? When Amazon grew how many shopping malls and plazas saw much less traffic (now some are selling department anchor space for warehouse to Amazon)? With the growth of Uber Eats/Doordash/ Pedidos Ya, how much less waiting staff/Tips are paid vs something to the delivery person? Coal miners used to go with a pick axe and wheel barrow, mining trucks were normal dump trucks. Now they have continuous mining at more than 10-15k tonnes per hour, and individual trucks that can carry 400+ tonnes of material per load, so 1 truck in place of 15 small ones.
Ansilta Goretex light jacket (644,000 Pesos , @1390ARS/USD = $463)
Other Gore-Tex shells ranging from $175-400
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