By the end of the year, the Government will present a bill which will establish art alternatives to obtain the $200,000 million the payment of the participation fee to the Municipality of Buenos Aires, after the adverse judgment of the Court. Among the measures that are being analysed, there is an increase in the tariff paid by the online game and also a tax on banks.
At first glance, the government’s plan seems unlikely to be feasible, simply because votes to pass a new tax are not secured. It turns out that the official strategy revolves around an axis: pay the Municipality but without affecting a single of the pesos that the province governed by Axel Kicillof is receiving.
Specifically, think the executive branch extend the tax on Leliq to the whole country that the banks of the City of Buenos Aires are taxed, since the National State cut its stake in the partnership in 2020. For this to be possible, the Government of Buenos Aires should derogate previously the tax charged to credit cards and Leliq holdings of financial institutions.
“If the Municipality uses it to replace the sharing fee, we can keep paying that tax to the banks, but to the nation state. It’s a zero-sum equation“, official sources said. The idea of this new tax is that it is temporary and that it is not necessarily shared by the rest of the provinces.
In this way, the Executive would provide at least 140,000 million dollars of the 200,000 it has to pay annually to the Municipality, without touching the share that the province of Buenos Aires now receives. The rest would come from the rate increase for online gambling.
The final decision has not yet been taken, but the Government faces a major challenge: gaining Congressional support to approve this Law, which would be sent in the next few days together with another package of projects, including the LNG Law and Hydrogen, the Agri-food Law, the Anti-Money Laundering project and the Payment Plan for ANSES, for those who want to retire but do not have the necessary contributions.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.