Axel Kicillof warned how the elimination of the PAIS Tax will affect

The government of the province of Buenos Aires, led by Axel Kicillofhas expressed concern about the elimination of the PAIS Tax and its negative impact on local tourism, especially facing the summer season.

This measure, which was recently announced by the national government, has generated an intense debate about its possible consequences for the economy and domestic tourism, according to Axel Kicillof. The PAIS Tax, which applied a 30% surcharge on card consumption in dollars, was eliminated as of December 24, 2024.

However, although this tax will disappear, a similar 30% surcharge will remain, but in the form of a perception destined for Personal Profits and Assets. This measure has been interpreted by the government of Kicillof as an incentive for outbound tourism, that is, for Argentines to travel abroad, to the detriment of domestic tourism.

The Buenos Aires Minister of Production, Augusto Costa, has been one of the main spokespersons for this concern. In several press conferences, Costa has highlighted that the elimination of the PAIS Tax favors tourism abroad and hinders the competitiveness of local destinations compared to international ones.

Axel Kicillof warned how the elimination of the PAIS Tax will affect

“The national government seems to be promoting tourism abroad, instead of generating favorable conditions for domestic tourism,” Costa said. According to data presented by Minister Costa, the tourism sector in the province of Buenos Aires has already experienced a notable drop during 2024.

Based on the INDEC Hotel Occupancy Survey, there was a 15% decrease in the number of travelers and a 19% drop in occupied nights in hotel accommodations during the first nine months of the year.

Axel Kicillof warned how the elimination of the PAIS Tax will affect

Figures

These figures reflect the negative impact of national policies on local tourism, altering consumption patterns and especially affecting the formal hotel accommodation sector. Minister Costa also pointed out a disparity in tourism behavior depending on the type of destination and the socioeconomic conditions of travelers.

Destinations that attract higher-income tourists show slight growth, while popular destinations, which receive lower-income or middle-class families, register a drop in both the number of tourists and spending per person. This situation is aggravated by the elimination of the PAIS Tax, which makes international destinations more economically attractive for Argentines.

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