A city in the north of Argentina has banned the sale of Coca-Cola, according to reports from local news agencies.

The city of La Rioja has fallen out with Coke over a tax dispute with a local distributor, EFE News Service reported today.

The Catamarca Rioja Refrescos company is apparently refusing to pay any of the "entry tax" the municipal government is levying on Coca-Cola products they sell.

The ban on Coke sales has been in place since Tuesday the report said.

La Rioja is taxing the distributor 0.3 pesos (10 cents) on every litre of Coca-Cola soft drinks it stocks in its jurisdiction.

"The entry tax is an internal tariff and that is expressly prohibited by the national constitution," Argentine Coca-Cola Bottlers Association chief Wenceslao Luiggi Arias told the business daily Infobae.