Governor Axel Kicillof and Mayor Julio Alak agreed to settle a debt of more than 11 billion that the province maintained with La Plata due to the capital rate. With these resources, 60th Avenue and Plaza San Martín in the capital of Buenos Aires will be renovated.
The government of the province of Buenos Aires made official this Thursday the agreement signed days ago between the governor Axel Kicillof and the mayor of La Plata, Julio Alak, intended to regularize the debt accumulated by the so-called capital rate, which amounts to $11,435 million.
It did so through Decree No. 3621/2024 published this Thursday in the district’s Official Gazette. The capital rate, established in 1990 by Fiscal Ordinance No. 5,862m, is a concept that the city perceives due to its status as the headquarters of the three provincial powers and for its provision of lighting, sweeping and cleaning services to the province’s public buildings located in its territory.. However, its collection was the subject of recurring litigation and agreements over more than three decades.
The province of Buenos Aires eliminated a tax
The agreement, in addition to settling historical liabilities, will allow the execution of key infrastructure works for the provincial capital. According to the decree published today, the agreement contemplates the payment of the debt corresponding to the periods 2014-2024 and commits the Province to finance two large-scale projects: the comprehensive renovation of the road infrastructure on 60th Avenue, between 131st Avenue and 167th Street, and the enhancement of Plaza San Martín, the one that separates the Government House from the Buenos Aires Legislature.
In addition, the agreement includes an advance of funds on account of future obligations derived from the capital rate. On the legal side, it is stipulated that The approval of the agreement will extinguish ongoing litigation over unpaid debtsputting an end to enforcement proceedings initiated by the Municipality against the Province.
It is indicated that the Ministry of Economy will be responsible for implementing the agreement, which also incorporates mechanisms to approve the commitments in the relevant judicial instances.
On December 20, the province and the municipality signed the agreement by which it was agreed that a total of $11,272,888 will be paid to the city. A week later, the Deliberative Council approved that rubric. The amount owed includes $6,275 million in fees and $5,538 million for interest and surcharges. According to the agreement, payment will be made in three stages: 30% immediately after legislative approval, 60% divided into three bimonthly installments, and the remaining 10% at the end. In addition, the Province committed to transferring an additional $1,000 million, destined for the fiscal years following the cancellation of this debt.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
