The fuel tax will rise 630% until May

The fuel tax will rise 630% until May

It must be taken into account that the ICT and IDC are fixed-sum taxes per liter, which are updated every three months for inflation. Currently, the tax is $27.7 per liter. But when the recomposition schedule announced this Thursday by the Government concludes, will end at $202.

This implies a level of incidence on the final price of 17% for Córdoba at today’s prices, but it can be estimated that in Buenos Aires it would be 22%. It must also be taken into account that between now and May it is likely that fuel prices will continue to rise.

With this true “tax”, the Minister of Economy, Luis Caputo, hopes to raise an additional 0.37% of GDPwhich is good for him at a time when Congress shows that it intends to limit tax increases as much as possible.

The report points out that “the increase that applies as of this Thursday is in the general resolution of the AFIP 4257 that updates the amount of the tax from $27.7 that it had last month to $64.9, that is, an increase of 134%.”

“At the end of June it should be updated according to INDEC CPI inflation for the first quarter of 2024. And so on, if there are no new legal changes,” the report states.

The official measure

The Government began to apply starting this Thursday a gradual increase in taxes on liquid fuels and carbon dioxide carbon on gasoline and diesel, for which a scheme was established to transfer pending charges from the third quarter of 2021 to the same period of 2023.

The measure was set to through decree 107/2023, published in the Official Gazette, and it was expected by both vehicle users and fuel retailers, since the successive extensions of the suspension of increases represented an accumulation of charges.

The Government set a schedule to update the tax. In February it starts with the delay of the third and fourth quarters of 2021 and all of 2022, in March which corresponds to the first and second quarters of 2023, in April the third and in May the fourth of last year. Meanwhile, it will have to update the 2024 amounts in June and December.

Source: Ambito

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