Skip to main content

Ships prefer the Paraguayan flag to avoid Argentine taxes

Friday, December 31, 2021 – 09:42 UTC

“If necessary, we will cripple the entire fleet passing through Paraná,” ​​said a guild leader.

Argentine seafarers’ unions warn of the trend for Argentine-flagged vessels to turn to Paraguayan registration to both bypass Argentina’s bloodthirsty taxation and benefit from Paraguay’s own regime, a process that seems likely to continue in the near future.

“Dear Members: A victim of bad policies, the lack of regulation of the merchant marine law and the high tax burden on Argentine-flagged vessels, as well as inefficient and high bureaucracy of the state, provinces , municipalities, ports, customs authorities and security police, the M / P PIRAY GUAZU is sailing towards Paraguay to change flag and then continue to carry out the same commercial traffic that it did until today with the Argentinian flag, ?? read a statement from the Center for Patrons and River Cabotage Agents.
The case marks a new case of an exodus of an Argentinian ship to Paraguay, with the ensuing loss of jobs, among other very serious consequences. The Piray Guazú is just one of the many tugs that navigate the Paraná Paraguay Waterway, driving the so-called “barge trains” that carry bulk or container cargo to and from Argentina’s ports, from Uruguay, Brazil, Paraguay and Bolivia.

These vessels connect the region’s river ports to port terminals which handle 90% of the region’s imports and exports.

?? Despite the efforts of the crews to make their wages more competitive, the circumstances discussed above determine the making of this decision by the shipbuilding company, which we do not blame, but rather victimize, ?? union document says.

“For this reason we are putting the entire river fleet dependent on this Patrons’ Center on alert, in protection, defense and care of the sources of work, of the national capital, of the loss of influence and sovereignty of our sailors”, concludes the press release. .

According to union sources cited by Infobae, the departure of the Rio Piray Guazú is temporarily delayed due to a specific shutdown of activities. The tugs are ?? coupled ?? barge trains that transport all types of bulk or containerized goods, becoming large convoys.

“On Monday, we will announce the action plan that we will implement to end this bleeding. If necessary, we will paralyze the entire fleet passing through Paraná, ”union leader Jorge Bianchi told Infobae.

?? The boats are leaving us … because of the fiscal costs to which the Argentinian flag subjects them. They quickly asked us to readjust the labor costs and we did so to save the labor source. There is no case, transporting the same container with a vessel registered in Argentina is much more expensive than transporting the same container in the same vessel with another flag, ?? Bianchi explained.

?? In view of the high level of [US] dollar, our workforce is on the ground, ?? he continued. But “the problem is fundamentally due to a very high tax burden, to which is added a huge national, provincial, municipal and port state bureaucracy, which makes the competitiveness of the national flag in river traffic unachievable”, he said. he also underlined.

(Source: Infobae)