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[BUSINESS] · Argentina · 28 sources

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Argentina industrial sector faces rising delinquency and tax pressure

Argentina's industrial sector is facing a severe financial crisis, characterized by a sharp rise in delinquency rates and mounting pressure from tax authorities. According to reports from the Unión Industrial Argentina (UIA), industrial delinquency quintupled over an 18-month period, rising from 0.7% in December 2024 to 3.8% by June 2026. This trend has affected approximately 4,231 companies, with $968 billion pesos in irregular debt. The crisis is attributed to high interest rates, which peaked at a 190% nominal annual rate, and a significant slowdown in productive credit growth.

In response to the economic strain, the UIA has formally requested that the Agencia de Recaudación y Control Aduanero (ARCA) suspend tax seizures and fiscal executions against small and medium-sized enterprises (SMEs) for 180 days. The industrial sector is also calling for broader tax reforms to reduce distortions and improve predictability for the private sector. In Buenos Aires province, the Unión Industrial de la Provincia de Buenos Aires (UIPBA) has presented a plan to Governor Axel Kicillof to reduce the tax burden on the manufacturing sector, noting that local production is losing competitiveness compared to other provinces due to higher effective tax rates.

Simultaneously, regional commerce in Catamarca is reporting a collapse in consumption and rising household debt, prompting local merchants to seek legislative support and employment initiatives.

Entities

Agencia de Recaudación y Control Aduanero · Argentina · Axel Kicillof · Union Industrial Argentina · Unión Industrial de la Provincia de Buenos Aires

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