The postponement will be until September 1st. It was originally scheduled for Wednesday 1 June.
The government has postponed the updating of the tax on liquid fuels. It is to prevent it from affecting the pumps and that this puts even more pressure on the inflation.
The postponement will be until September 1st. It was originally scheduled for Wednesday 1 June. With this, 5 quarters have already been postponed.
The provision was published on Tuesday in the Official Gazette, through of the Decree 285/2022. “In the case of consumption taxes, and given that the demand for liquid fuels is highly inelastic, changes in taxes practically directly transferred to the final fuel prices “, alludes in the recitals by way of justification to the decree signed by President Alberto Fernández; the Chief of Staff, Juan Manzur, and the Minister of Economy, Martín Guzmán.
The provision warns that “in line with the measures implemented so far and in order to ensure a necessary stabilization and an adequate evolution of prices, it is reasonable to postpone the effects of tax increases for unleaded petrol, virgin petrol and diesel “.
Starting with a change in 2018, the Fuel Tax includes updates in its fixed amount in January, April, July and October of each year based on changes in inflation for each previous quarter. Like this, watching cushion the fluctuations of the dollar or the price of crude oil which is used as a reference.
This is not the first postponement, the adjustment of those taxes “were subsequently deferred” in 2020. With today’s decree, the updates corresponding to the four quarters of 2021 and the first quarter of this year are pending.
The last increase in pump values was in early May, at which time YPF, Shell and Axion established increases that averaged between 9% and 12%, depending on the fuel variety.
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Source: Clarin
