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IARAF Finds Taxes Make Up 42–43% of Food Prices in Argentina in 2025

VAT dominates the burden, with provincial plus municipal levies pushing the total above two fifths.

Overview

  • In IARAF’s model using a 21% VAT rate, the national take totals about 33.1% of the retail price, led by VAT at 17.4%.
  • Mandatory social security contributions add roughly 9.4% of the final price, with corporate income tax contributing about 4.4%.
  • Provincial Ingresos Brutos adds around 7.6% in small shops and 7.8% in large retailers, while municipal TISH ranges from 1.5% to 2.2%.
  • The total fiscal share averages 42% in small retailers and 43% in hypermarkets, with lower effective burdens for milk (26%), bread (24%) and meat (25.4%).
  • National officials propose cutting the bank-debit tax and some payroll charges and press governors to trim Ingresos Brutos, though provincial resistance remains.