The proposal of Macri to eliminate the exemptions that have been in force since 2019 on the electrified vehicle fleet of CABA generated comings and goings between the parliamentary ruling party and the Executive power in search of a consensus between two, a priori, contrasting views: on the one hand, reducing the use of fossil fuels; on the other, the tax equity.
From the automotive companies and dealerships they warned about the negative impact that could have on the sustainable mobility and the energy transition if the benefit were removed from said segment. In defense of the original version, since Uspallata They insisted that the objective pursued was achieve “greater tax equity”.
The claim was moved to the benches of the parliamentary ruling party and opened a discussion with the Executive power to reach an intermediate measure. The new project will distinguish between hybrid-electric and exclusively electric and, based on this, it will include an exemption for the first 24 months for vehicles with a tax valuation of less than $60 million. From there, a progressive taxation scheme will be implemented.
How will the collection of patents for hybrid and electric cars be?
The legislator of PRO, Claudio Romero, who led the talks to modify the original project, he told this medium how the new version will be reflected, which will be discussed on the premises this Thursday in the Legislature, when the Budget 2025 and the Tariff law.
The majority opinion incorporates the article 428 Bis which provides that “light and heavy vehicles self-propelled by engines in hybrid-electric systems in series-parallel or series-parallel will enjoy a exemption of the payment of Patents on Vehicles in General during the first 24 months of settlement in the Autonomous City of Buenos Aires.”
Furthermore, once the two years have elapsed, during the following fiscal years “a 60%, 40% and 20% exemption respectively will be granted on the tax that must be paid, and the total resulting tax must be paid from the sixth year of filing”. And he clarifies: “The tax benefit only applies to vehicles in which said characteristics are original in manufacturing and whose tax valuation does not exceed the amount established by the Tariff Law.”
He tax value It is still under discussion. Initially, the proposal was $60 million for the maximum category. However, the Executive circulated a latest version that would be around $48,110,000, so that the high-end vehicles. The outcome will be seen on Thursday at the venue.
While “light and heavy vehicles self-propelled by engines in systems exclusively electric will enjoy a total exemption for the payment of Vehicle Licenses for any year of residence in the Autonomous City of Buenos Aires and for any amount of Tax Valuation.”
Likewise, the new article 428 bis establishes that it will be Environmental Protection Agency, in conjunction with the Government Administration of Public Revenueswhich will establish what the requirements will be to consider these vehicles covered by the exemption.
Romero celebrated the changes proposed by the Executive. “Going from a proposal in which all hybrid and electric vehicles paid to this modification is very good”he expressed to this medium.
Tax equity vs sustainable mobility
Currently, 8.2% of the units sold in the City correspond to hybrid-electric models. There are about 4,800 units. The best-selling models, the Toyota Corolla Cross XEI Hybrid and the Toyota Corolla XEI hybrid, would be affected by the changes given that they have a list price of $40,821,000 in its base version and $33,447,000 for the sedan.
In any case, all hybrid units They will enjoy a tax benefit during the first two years. And they will just be on equal terms with the rest of the automotive fleet during the sixth year. Over time, the change will be gradual: in the third year they will have an exemption from 60%, the fourth year will be 40%, the fifth will be reduced to 20% and for the sixth year they will pay taxes on the complete patent.
Another point that focused attention in the committee debate was the increase in the rate on pickups proposed by the Executive Branch. The original project proposed that they be taxed according to their valuation. However, the PRO legislator confirmed that the Government will back down: “Pickups will once again be taxed at 2.3% because they are work tools.”
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 achieve a 50% reduction in Greenhouse Gas (GHG) emissions by 2030 compared to 2015. The partial elimination of the exemptions raises doubts as to whether, once the deadline has passed, the goals can be met.
Meanwhile, the ruling party counts vote by vote each of the supports to approve both projects. Despite the resistance of Union for the Homeland, Freedom Advances and the Left Frontthe block Let’s go for More (PRO and allies) was close to approval, although The final result will be seen this Thursday during the session.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
