“In the case of consumption taxes, and given that the demand for liquid fuels is highly inelastic, the variations in taxes are transferred practically directly to the final prices of fuels”stated the decree.
For this reason, he stressed that “in line with the measures implemented to date and in order to ensure the necessary stabilization and adequate evolution of prices, it is reasonable to postpone for unleaded gasoline, virgin gasoline and diesel the effects of increases in tax amounts.
As of a modification in 2018, the Fuel Tax foresees updates in its fixed amount in January, April, July and October of each year based on the variations in inflation of each preceding quarterly period, seeking, in this way, , cushion the fluctuations of the dollar or the price of crude oil that were previously taken as a reference.
The rule recalls that the updates for unleaded gasoline, virgin gasoline and diesel “have been successively deferred” in 2021.
This is the sixth postponement of the application of the tax that this year was already extended in February and June.
With today’s decree, the updates corresponding to the four quarters of 2021 – postponed from the end of February to June 1 – are pending, which would now be applied on October 1; and those of the first and second quarters of this year that, also according to the decree, were left for January 1, 2023.
Source: Ambito
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