Counterpoint to the reduction of agricultural taxes at a summit in Córdoba between Llaryora, Frigerio, and Pullaro

Three governors from the country's central region met this Thursday in Córdoba and agreed to move forward with a demand to the government regarding revenue-sharing funds.

However, there was a counterpoint to the unilateral demand communicated by Santa Fe regarding the removal of agricultural taxes, which Javier Milei is expected to announce this Saturday at the opening of the Rural Exposition.

The statement released by Maximiliano Pullaro's government was particularly surprising to the Entre Ríos administration, which distanced itself from that specific demand and released another, much more conciliatory text, emphasizing education.

The text sent by the Santa Fe residents also included Martín Llaryora from Córdoba and Rogelio Frigerio from Entre Ríos in the complaint regarding the land withholdings. However, the only one who spoke publicly about the farming issue was Pullaro.

"We feel that the National Government insists on intervening in the agricultural sector. Therefore, we are asking for an end to the withholding taxes; we don't want a reduction or a temporary cut. These resources are taken by the Nation and are not returned to roads, energy, or services. There are increasing cuts, but the provinces continue to bear the responsibility," emphasized the governor, of Radical origin.

We need agricultural taxes eliminated. This demand is central and urgent: the provinces of the productive interior cannot continue to sustain a Buenos Aires-centric model of the country alone.

We have been working in the Central Region for almost two years now, together with… pic.twitter.com/antcW3RhvW

— Maximiliano Pullaro (@maxipullaro) July 24, 2025

The statement they signed in Entre Ríos was completely different; in practice, it was much more measured and less confrontational. In addition to highlighting the work on education-related issues, the Frigerio administration extended a gesture to Javier Milei.

In the text, Frigerio says that the provinces "are also united by the conviction that we want and need the national government to do well. To the best of our ability, we will work and help to make that happen." And he concludes: "If the national government does well, the provinces do well too."

Entre Ríos sources considered Santa Fe's message to be inappropriate , especially given its timing, when the government is on the verge of, at the very least, lowering withholding taxes, and in the midst of parliamentary negotiations.

Llaryora shared a mixed message on social media. "We are three governors from different political parties who have shown that it is possible to work together, without shouting, without fighting, without grievances. If this form of dialogue and cooperation were imitated in the capital and the rest of the country, we would surely fare much better," the governor of Córdoba emphasized.

However, he also emphasized his support for the national administration. "We will continue to support all necessary measures to help our country regain macroeconomic stability and reduce inflation," he reflected.

In the #CentralRegion, we're three governors from different political parties who have shown that it's possible to work together, without shouting, without fighting, without grievances. If this form of dialogue and cooperation were imitated in the Capital and the rest of the country, we would surely be very successful... pic.twitter.com/mujAXiaq9J

— Martín Llaryora (@MartinLlaryora) July 24, 2025

The three governors, in line with the majority of provincial leaders, signed two bills in parallel a month ago demanding that the government provide more resources through revenue sharing, particularly regarding the distribution of ATN and the fuel tax.

Both passed the Senate and are halfway through approval to become law in the House of Representatives after the winter recess. The fiscal cost of these changes, according to the provinces, is estimated at 0.11 points of GDP, although the government claims the economic impact is greater. Therefore, Javier Milei will veto them.

The President was extremely harsh with the provinces at the time, claiming that "they want to destroy the government." Milei's analysis of the provincial leaders was very harsh.

"The governors' tax revenue has been growing between 7% and 8% in real terms. They started from a balanced position and are receiving a ton of resources. If they started from a balanced position, it's growing 8% in real terms. They want to destroy the National Government. Yes, obviously. What it proves is that what was done in recent years was completely wrong. It was a business for those in the state party, regardless of their political affiliation; they're all from the state party," Milei said.

Beyond the negotiations on the bills themselves, the government also hopes the provinces will support the President in other vetoes, such as those he will sign regarding the pension increase, the extension of the pension moratorium, and the emergency disability law. The Rosada (Presidential Chamber) estimates that this entire package will have a cost to GDP of 2.4%.