BuySellBA
Administrator
Increase in the ABL: what the Buenos Aires 2025 Budget says - Pagina 12
Source:
Aumento en el ABL: qué dice el Presupuesto porteño 2025 | Actualización impositiva
Las autoridades aseguraron que, actualmente, el impuesto padece una falta de progresividad, "debido a la inflación registrada en la última década".
October 01, 2024
Authorities said that the tax currently lacks progressivity "due to the inflation recorded over the last decade."
The Buenos Aires City Government sent the 2025 Budget to the Buenos Aires Legislature on Monday. The project includes a modification in the calculation of the tax for Street Lighting, Sweeping and Cleaning (ABL) that introduces new geographic segmentations "to make it more progressive and equitable," the authorities assured, and that homes located in higher-income areas pay a higher increase.
According to data from the City's Ministry of Finance, current ABL revenue covers "barely a third of the cost of the service " and the tax lacks progressivity "due to the inflation recorded in the last decade." In any case, the project must be discussed in the Buenos Aires Legislature.To balance this account, the 2025 Budget of the City of Buenos Aires proposes the implementation of scales with a higher level of disaggregation. Thus, instead of seven, there would be ten scales used to calculate the ABL rate.
The text also provides for incorporating a geographic coefficient into the calculation of the tax rate - which will be adjusted according to the location of the property - and which will include discounts for each area.
The dwellings located in the communes of the southern part of the city correspond to a coefficient between 0 and 0.5, those located in the central area a coefficient between 0.75 and 1.25 and, finally, those in the northern area a coefficient between 1.50 and 2. According to these criteria, the application of the bonuses would be as follows:
Regarding the percentage variation of the first installment of 2025 compared to that of December 2024, the increases in the areas without bonus will be applied as follows:
- 12% of total items will have an upgrade of up to 50%.
- 31% between 50 and 100%.
- 57% of the register, more than 100% tax update.
Meanwhile, in the areas with bonuses, the increase will be reflected as follows:
- 85% of total games will have an upgrade of only up to 50%.
- 15% between 50 and 100%.
- There will be no tax updates greater than 100%.
Exemption from ABL payment for retirees
Finally, the Buenos Aires City Government proposed new parameters for retirees to request exemption from paying the ABL.The projection for next year includes using as a reference the Homogeneous Fiscal Valuation of the property , with a maximum value of $30 million - when it is currently $75,000 - and receiving a pension equal to or less than three times the minimum pension - when now it is two and a half times.
"If they meet the required requirements, 9,301 new taxpayers could access the exemption. In this way, in 2025 there could be a total of 89,092 retirees and pensioners exempt, totally or partially, from paying the ABL," said the Buenos Aires authorities.
www.buysellba.com
