City Budget: the PRO analyzes modifying the proposal to charge license fees for electric and hybrid cars

City Budget: the PRO analyzes modifying the proposal to charge license fees for electric and hybrid cars

During the first semester, the sale of electrified vehicles reached 6,169 units, registering a year-on-year growth of 32.7%, according to the Association of Automotive Dealers of the Argentine Republic (ACARA). Currently, the 100% electric cars (BEV) and hybrids in all their variables do not pay the initial registration nor the subsequent license fee in the City. The same happens with the self-charging (HEV)the plug-in hybrids (PHEV) and the micro hybrids (MHEV).

The debate in committee generated a reaction from the opposition benches but also from the ruling party itself. Claudio Romero, legislator of PRO in the block Let’s go together, He presented a proposal to the Macri government to review the original proposal.

In dialogue with Scope He explained that the objective of his proposal is to maintain the exemption up to $32 million and to progressively begin to pay for the highest value models: “From $32 million and up to $60 million I proposed that the patent payment be exempted during the first year. The second year 25% is charged, with an increase for the third year to 50%. The fourth year it would reach 75% and from the fifth they would pay full patent.”

In the event that they are worth more than $60 million, Romero pointed out that they should pay the full value like most cars. Far from being reluctant to argue the point, The Executive analyzed the legislator’s proposal and made a counteroffer. “They gave me back a counterproposal that is half of what I proposed“, advanced the legislator, who was dissatisfied with the response and advanced: “It is still being negotiated.”

Climate change and tax progressivity

In it sector of the dealerships They warn that the world is moving towards electromobility. “In New York there is no noise in the street. Big cities are changing and Buenos Aires does not have to be the exception”they highlighted to this medium.

From the Association of Automotive Factories (ADEFA) They also expressed to Ámbito their rejection of the modifications promoted by the Buenos Aires Executive. “We see with concern about the modification of the budget for the year 2025, specifically the proposal to eliminate the exemption from paying license fees for hybrid and electric vehicles registered in the city that exceed the year of registration,” they expressed.

From the automotive terminals they assure that it is a measure “that goes in the opposite direction to promoting sustainable mobility” which, for example, are applied by countries that seek to boost the demand for electromobility to contribute to the reduction of carbon footprint.

For him Renault CEO, Pablo Sibilla, The patent fee would not affect the current trend. “There are two electric vehicle customers, the “floatist” with Kangoo The costs of utility vehicles serve it and the rest is super niche. We do not see the trend changing because it is low volume“he asserted.

The legislator Claudia Neira, of Union for the Homelandconsidered that it is “a good incentive” that this type of vehicles have exemptions, but described Macri’s proposal as “very drastic” since “it goes from not paying anything in one year to paying completely in subsequent years.” . In that line, called for “a gradual reduction of the bonus to be reconsidered and for it to be fully achieved in 4-5 years, for example.”

On the other hand, he considered that there is a good portion of the hybrid/electric vehicle fleet that “not only have a high cost, but are also high-end and top brands,” so, in those cases, proposed “to completely rethink the exemption as it operates today.”

It should be remembered that, in line with the Paris Agreement driven by the UN, the City joined in 2016 the Sustainable Development Goals (SDG) driven by the Climate Action Plan 2050 through which They committed to being “carbon neutral”. The initial objective is to achieve a 50% reduction in emissions by 2030. Greenhouse Gases (GHG) compared to 2015.

“The transportation sector is responsible for 30% of emissions. GHG associated with the energy demand of its activities in the City. And this percentage is due to the use of fossil fuels, such as gasoline and diesel, associated with all vehicles in the vehicle fleet that circulates through the same”, states the City itself on its official site.

In the document they argue that the alternative vehicles to the conventional fuel, that represent a lower environmental impact, became “preponderant” to combat the effects of climate change. Therefore, if the original project is approved without changes it will be a strong setback for the environmental agenda.

For the current management, the elimination of tax benefits for the electromobility aims to tax equity since they point towards high-end vehicles, that is, those that high-income sectors can purchase. In the private sector they say that 85% of sales are concentrated in two models whose price gap with similar traditional ones is minimal.

As an example, the Toyota Corolla Cross XEI Hybrid and the Toyota Corolla XEI hybrid have list price $40,821,000 in its base version and $33,447,000 for the sedan, while the equivalent internal combustion version costs $39,747,000 and the Corolla XEI has a price of $31,269,000.

Other changes in Budget 2025: the categorization of pickup trucks

Another of the controversies raised by the Budget Buenos Aires is the elimination of the reduction of the rate in the payment of patents for the commercial vehicles, of the type pickup. “In this case again It would be affecting thousands of citizens who have this type of vehicle as working capital and an allied tool. to carry out their professional tasks,” they complained from ADEFA. Along these lines, they expressed their willingness to dialogue “to avoid counterproductive results for consumers.”

Rosemary announced that Jorge Macri’s government committed to modify the wording about the categorization of pickup trucks. “They had proposed putting them within the general scale, by amounts, but they confirmed to me that the Pickups and 4x4s will return to 2.6 because they are mostly work tools,” something which he emphasized during the committee’s treatment.

Changes in the calculation of vehicle registration

The Buenos Aires government also brought to the Buenos Aires parliament a change in the calculation of patenting of internal combustion vehicles to restructure the current scheme and promote progressivity. With the readjustment of scales and aliquots, They seek to avoid sudden jumps between one valuation and the next.

Currently, the difference of $1 in the value of one vehicle with another can generate a substantial increase in the value of the license plate, pushing the taxpayer to pay up to double the tax. “The new proposal generates progressivity from the increase in the valuation of the vehicle, defining a minimum amount in each scale and an aliquot for the surplus”they pointed out from the PRO administration.

patents new budget calculation 2025.jpg

As an example, a Fiat Siena model 2015 that has an estimated valuation in $5,984,400, will be framed in the section that goes from $4,909,680 to $11,292,480 for which you will pay a effective rate of 2.03%. In 2024, for the same vehicle, the rate was 3.2%.

If the current calculation is taken, the vehicle should pay $191,500. With the new method, the amount will be $121,543that is, approximately $70,000 less than the current scale.

Source: Ambito

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