Jujuy Agriculture

Jujuy tobacco growers raised concerns in the Senate over fiscal asymmetries and energy costs

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Pedro Pascuttini presented before Senate committees the loss of competitiveness of the sector due to taxes, energy, fuels, and freight. The Tobacco Chamber requested regulatory tools to sustain production and exports and reminded that the activity is the second largest employer in the province.

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The president of the Tobacco Chamber of Jujuy, Pedro Pascuttini, presented before the Regional Economies and Industry committees of the National Senate on the situation of the activity. His presentation described a loss of competitiveness associated with tax pressure, the cost of energy and fuels, the value of freight, and the deterioration of road infrastructure.

Pascuttini indicated that representatives of NOA, NEA, Cuyo, and Patagonia agreed on demanding a more favorable exchange rate for regional economies. He also questioned the impact of distances in relation to the main consumption and export centers. For producers from Jujuy, these factors accumulate with a fiscal structure that they consider unequal compared to Pampa Húmeda.

The leader compared the IVA of 27% applied to electric energy and certain inputs with a portion of 10,5% that he attributed to activities in the central part of the country. The entity requested regulatory instruments that reduce these differences and allow maintaining production and export volumes. The claim constitutes a sectoral proposal and has not yet resulted in an approved tax modification.

Another point was the seasonality of energy use. Tobacco curing concentrates consumption between October and February, but producers face fixed electricity and gas charges throughout the year. Pascuttini added the weight of municipal rates in rural areas and stated that the design of these costs does not reflect the actual pace of productive activity.

Despite the scenario presented, the Chamber confirmed that the transplanting stage has begun with the aim of maintaining, at a minimum, the area planted during the previous campaign. The entity also highlighted the labor dimension of tobacco: it ranked it as the second largest generator of direct employment in Jujuy, only behind the provincial public administration.

Pascuttini requested channels of dialogue with provincial and national authorities and an adjustment of labor responsibility agreements to the available resources. The presentation established the sector's diagnosis within the Senate, but it did not by itself produce tax reliefs, tariff changes, or additional assistance. Those responses will depend on subsequent administrative or legislative decisions.

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