This friday starts a year loaded with price increases and changes in taxes. Between patents, real estate and Gross Income in the Province of Buenos Aires and subways, taxis, fines, VTV and parking in the Buenos Aires district, who live in the Metropolitan Area of Buenos Aires (AMBA) they will feel the impact in their pockets in 2021.
Patents, real estate and Gross Income: increases in the Province
The Legislature of the province of Buenos Aires will deal with the 2021 tax bill, which the governor recently sent Axel Kicillof and what does it contemplate an increase in the Gross Income rate that are taxed by financial entities and limits for increases in property taxes.
Regarding the taxes on the patrimony – real estate and automobiles, among others -, the Buenos Aires initiative sets a limit of 32% for increases that occur during the next year, in line with the inflation estimated by the Nation for all of 2020 and above the forecasts for next year (29%).
Regarding rural real estate, the table of aliquots and The 32% cap will apply for valuations up to $ 19.6 million. The increase cap will also be in effect for properties with higher valuations but that have land free of improvements up to 2000 hectares.
Regarding the Automotive Tax, the province updated the tables to adapt them to the valuations of vehicles – cars, vans, trucks, pick-ups, jeeps and vans – and set the same increase limit for 2021. The exception to this limit will be given in vehicles of more than $ 5 million.
The Buenos Aires Collection Agency (ARBA) will be in charge in addition to setting the conditions for access the benefit of 20% discount on the tax for vehicles less than five years old for taxpayers registered in the Tax on Gross Income (IIBB).
Regarding the Gross Income scales, which weighs on professionals and merchants, Kicillof will maintain the current aliquot scheme before “the fall in the turnover produced in 2020 in a large number of sectors due to the pandemic.”
The scheme will also have reduced rates for companies with lower turnover. The minimum amount of the monthly advances of this tax was set at $ 615. And it points to those who had the least impact of the coronavirus crisis, who pay the most. So raises the IIBB aliquot from 7% to 9% financial activities, while a 4% rate is levied on the use of digital platforms to market goods and services.
Subways, taxis and VTV: increases in CABA
First, adjustments in the tax on Lighting, Sweeping and Cleaning (ABL) Buenos Aires will be calculated on a monthly basis starting in January 2021. The Consumer Price Index (CPI) will be taken as a reference, in a calculation that is six months behind the month of payment. Thus, for example, in January an adjustment of 2.4% corresponds, coinciding with that index of August 2020.
This week, in addition, the increases that Buenos Aires will see in the first semester of 2021 were known. The Government of the City of Buenos Aires reported an adjustment of subway rates, taxis, fines, parking and Vehicle Technical Verification (VTV), with increases that will go from 43% to 100%, after the public hearings that were called for January.
It is expected that the increases could begin to be applied from February, although, depending on the case, they will be staggered until April or May. This is the case of the subway, whose total adjustment will be 43% in two stages, the first in March and the second in April or May. In this way, each trip will go from $ 21 to $ 30 and the Premetro from $ 7.50 to $ 10.70.
For its part, the increase in the taxi fare will be 44%, also in two stages. The first increase will be in February and the second in April, after the hearing also set for the first month of the year. In February, the day token will go from $ 5.95 to $ 7.14 and the flag lowering will cost $ 71.40, while the night token will go up to $ 8.57. In April, the daytime tab will rise from $ 7.14 to $ 8.57 and the flag drop to $ 85.70, while the nighttime rate will be $ 10.28.
At Metered Parking service the adjustment will reach 100%, increasing from February from $ 15 to $ 30. “The value of the hour of parking in the streets of the City of Buenos Aires has not been adjusted for 18 months and is out of date with respect to other cities, where it already exceeds $ 33 (Rosario, Morón)”, indicated the Government.
Although at the moment the parking lot operates like Sunday, the new rate will govern when metered parking is resumed.
Regarding the VTV, the increase will be 45% and will take effect from February. For cars will go from $ 1838 to $ 2665 and to The bikes will increase from $ 691 to $ 1002. The reason for this adjustment is to “cover operating costs and workers’ salaries,” as explained by the City.
But the 82.5% traffic fines. This is due to an adjustment in the value of the Fixed Unit for the payment of infractions, which must be updated every six months, according to Law 451. Its current value is $ 21.40 and it has not changed since February 8 of 2019.