Catamarca eliminates Gross Income tax for the industry and Longvie moves its production there

The productive map of the Argentine Republic is undergoing a profound transformation driven by the tax reduction policy promoted by the national government led by President Javier Milei. In the face of the failure of the statist model of high fiscal pressure that disincentivizes investment, Catamarca has positioned itself as the first Argentine province to advance with this cutting-edge measure: the elimination of Gross Income Tax on industrial manufacturing with the central goal of lowering costs in the sector.

This shift towards a free market starkly contrasts with the reality of jurisdictions like Buenos Aires, led by the Kirchnerist governor Axel Kicillof, where tax suffocation destroys competitiveness and freezes private development.

As a direct consequence of this tax relief and in absolute alignment with the national economic direction, the emblematic company Longvie defined a decisive strategic shift. Due to the elimination of Gross Income Tax on industrial manufacturing in Catamarca, the brand decided to fully relocate its entire production of washing machines, stoves, ovens, cookers, water heaters, and thermo-tanks to the northern province.

These lines had been operating until now in Buenos Aires and in the plant in Paraná, province of Entre Ríos, districts from which the company decides to withdraw because "Kicillof is sinking them with taxes" and disables the profitability of the factories.

Entering the operational and specific realm, the institutional understanding was consolidated on 26/08/2026 during a summit held at the Government House. In this meeting, Governor Raúl Jalil and the CEO of Longvie, Eduardo Zimmermann, formally reviewed the productive reconversion plan.

The strategy includes the refunctionalization and enhancement of the plant located in the El Pantanillo Industrial Park, in San Fernando del Valle de Catamarca, redirecting the facilities towards the production of water heaters and injection plastic parts with the goal of increasing the installed capacity and optimizing vertical integration processes.

Currently, the manufacturing establishment generates direct employment for more than 60 workers, fully maintaining the existing workforce and projecting growth through the application of painting, folding, stamping, and the use of high-tonnage injection machines.

This infrastructure will not only supply components for the firm's internal consumption but will also continue to provide to major clients such as the brand Puma. The definitive establishment is further consolidated through local promotion tools that include transport subsidies, salary costs, strengthening programs, and provincial logistical assistance articulated to safeguard jobs and ensure the success of the investment.