A recent survey conducted by KPMG highlights the challenges faced by Argentine businesses regarding the Gross Income Tax (II.BB), as six out of ten financial executives identify it as the foremost obstacle affecting their ability to set prices, promote economic growth, and invest. This reliance on II.BB has become a pressing concern among medium to large-sized companies, emphasizing its growing distortionary impact on the overall economic environment.

The KPMG survey, now in its 11th edition, interviewed over 80 financial directors and tax specialists and reveals a stark outlook for the future. A staggering 90% of companies surveyed do not anticipate any reduction in the fiscal pressure imposed by provincial governments. Instead, businesses brace for the enduring impact of II.BB, which not only affects operational costs but also creates complications with outstanding balances deemed increasingly problematic.

This situation continues to precipitate a climate of uncertainty among investors and businesses alike, as they grapple with high tax burdens that hinder prospects for growth and development. The concerns outlined in the survey underscore the urgent need for policy adjustments to alleviate tax burdens and stimulate a more conducive environment for investment and economic stability in Argentina.