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Axel Kicillof reverses patent increase and freezes next quota

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The governor of Buenos Aires Axel Kicillof has decided not to apply the increase foreseen for the next license plate expiry.

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Amid the controversy generated by the increase in taxes in the Province, the government of Buenos Aires partially froze the inflation update required by the patent. “The official decision is not to make use of the powers granted by the Provincial Legislature to Axel Kicillof to update inflation rates in all property taxes,” government sources said.

The measure will apply, in principle, to installment 2 of the Car Tax which expires in May, which will maintain the same value as installment 1 which has already expired.

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The Tax Law authorized the government of Buenos Aires, beyond the global increases compared to last year, to update tax payments in relation to inflation recorded in each period. In the case of the Urban Real Estate which expired yesterday, installment 2 was readjusted by 20% compared to the cost of living, which rose to 51.5% in recent months.

As regards the Patent, the same path would have been followed, but Kicillof’s decision in the last hours At least tariff 2 the tax has the same value as tariff 1.

No decision is made for the third deadline. “Milei proposes day by day, we don’t have clear parameters for planning” They say in the government of Buenos Aires.

The version regarding the possible official measure not to apply the quota update had begun to emerge in recent days in various sources.

“In the case of the Automotive sector it was interpreted that with the increase in valuations and the reduction of premiums, For now, revenue from this tax is in line with expectations”say the sources consulted.

It was announced in March The average annual tax increase for 2024 will be 180.4%as specified at the time in ARBA, the body that collects patents 1,823,102 vehicles from the province.

Users began to alert themselves with the arrival of new episodes: for example, a 2015 Ford Fiesta that He paid $10,840 in December last year, in March he had to pay $40,050. Or a 2016 VW Fox went from $10,963 to $41,111.40 over the same period.

Source: Clarin

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