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The GCBA presented the project for next year that has modifications in ABL, without II.BB for professionals and zero deficit is proposed
By Redacción NU
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The City Government presented the 2025 Budget project in the Legislature with the largest investment in the history of the CABA in terms of security. It also has an ambitious plan for public works and urban mobility and the area with the largest budget will be Education with 20.1% of the total. In terms of social issues, out of every 100 pesos, 62 will be allocated to providing this type of care. And under the premise of fiscal balance, there will be substantial changes in tax matters "with the aim of generating a more progressive and equitable scheme."
The macroeconomic guidelines and the macro fiscal framework will be in line with what is established in the national budget: a variation in the level of activity of 5%, a price level of 18.3% and an exchange rate of $1,207 per dollar by the end of next year.
Regarding projections for next year, total expenditure is estimated at $13 trillion 926 billion, while total resources will reach $13 trillion 936 billion. Thus, for 2025, the City of Buenos Aires estimates a surplus Financial Result estimated at $10 billion.
For its part, current income and expenses projected for the 2025 fiscal year show a Primary Economic Result of $2 trillion 813 billion, while the Primary Result (Total Resources less Total Expenses without accounting for Debt interest) is estimated to be in surplus at $131 billion.
It is important to highlight the reduction in the weight of public debt interest, which amounts to 121 billion pesos, or 0.9% of the total budget.
Projection of resources
Total Resources for the year 2025 present a forecast of $13 trillion 936 billion, which correspond -in their entirety- to Current Resources.
For its part, the estimate of Tax Resources is $12 trillion 827 billion, of which $10 trillion 152 billion correspond to own resources, while $2 trillion 675 billion refer to income from Federal Tax Sharing.
Of this total income from Sharing, $1 trillion 235 billion correspond to the coefficient of 1.40 that the City receives daily, through a transfer from Banco Nación, while $1 trillion 440 billion refers to the equivalent of the coefficient of 1.55 that, after the agreement between the GCBA and the national Government, will be transferred weekly by the national administration.
Beyond this agreement between the parties, the City will continue with the claim before the Supreme Court of Justice of the Nation regarding the automaticity and the substantive issue regarding the reinstatement of the coefficient of 3.5, which was removed without consultation and unconstitutionally by the previous government at the end of 2020.
Expenditure projection
Total estimated spending for 2025 will be $13.926 trillion, with primary spending totaling $13.805 trillion. Projected current expenditure (excluding debt interest) amounts to $11.123 trillion. Capital expenditure is budgeted at $2.682 trillion.
In the composition of current expenses, the most important item is that corresponding to staff remuneration, which represents 42.4% of total expenditure. It presents a forecast of $5.905 billion, which reflects the annualization of staff expenditure for 2025, taking into account a projection of future collective bargaining negotiations.
Expenditure by purpose and function
Social services such as Education, Health and Social Promotion and Action comprise the majority of the investment for 2025, with 61.9% of total expenditure and a planned credit of $8.614 billion.
Education is the area with the largest share of the next budget, with 20.1%. Investment in this area next year will reach $2.795 billion.
For its part, the Health function represents 16.5% of the total, with a credit allocated for 2025 of $2 trillion 298 billion. Meanwhile, Promotion and Social Action represents 9.2% of the total budget, with a credit of $1 trillion 287 billion.
As for Security, this goal is one of the greatest concerns of the Citys residents. For this reason, for next year it will have the largest budget in its history, reaching 16.5% of the total projected for the next fiscal year, with a planned credit of $2 trillion 298 billion.
Finally, with respect to the total Public Debt (interest and expenses), there is an assigned credit of $126 billion, again reducing the weight of debt interest in the total budget, since it will go from 1.5% allocated for the current year to 0.9% for 2025, the lowest figure in the last 20 years.
Strong increase in investment in public works
Capital expenditure is projected to account for 19.3% of the total budget by 2025, when the historical average for the last 16 years was 16%.
It is based on two main axes: Comprehensive Urban Mobility Plan and Revitalization of the Southern Zone.
The Comprehensive Urban Mobility Plan, which will be implemented from 2025, is made up of the following projects: Subway Network, Micromobility, Motor Transport, Electric Mobility, Construction of Underpasses, Road Works and Traffic Management.
Furthermore, in order to continue promoting the growth of the City, this administration intends to strengthen urban development to revalue the southern area, which will encourage economic activity without losing the identity of each neighborhood and without neglecting the needs of the residents.
Progressiveness of the tax system
This effort aims to redesign the relative weight of taxes within the Citys tax system to achieve a fair and equitable distribution of tax burdens.
The aim is also to make the system more progressive, improving the proportion of taxes according to the ability to contribute. In this sense, the aim is to alleviate the burden on sectors with less ability to contribute.
Current situation
The valuation of vehicles is based on what is published annually by ACARA (Automobile Dealers Association of the Argentine Republic).
In this sense, to determine the tax, the valuation of each vehicle as of October 2024 is taken as a reference.
According to the value of each vehicle, each provincial treasury then applies a certain rate for each unit.
New scheme for 2025
The previous scheme generated stagnation and sharp jumps between similar valuations. In this way, situations arose in which, for example, a vehicle with a value higher than $1 could generate a jump to a higher rate that automatically generated double the tax.
It is therefore proposed to restructure the way the tax is calculated, in order to achieve a more equitable system by readjusting scales and rates.
The new proposal generates progressivity based on the increase in the valuation of the vehicle, defining a minimum amount in each scale and a rate for the surplus.
Patents: tax equity
In the search for greater tax equity, the review of specific situations is being promoted, so for 2025 it is proposed:
Hybrid and electric cars: Until now they were exempt from paying the tax. Starting in 2025, this exemption will be eliminated. Only new registrations will maintain the benefit and only during the first fiscal year.
Low-floor buses: Until now, they were exempt from paying the tax. This benefit had been implemented to encourage the installation of these units. Since the adaptation process has already been completed, it is proposed to eliminate the exemption. The rate will be the one corresponding to the table: 1.15%.
Pick Ups: Until now, they were taxed at a reduced rate. Starting in 2025, it is proposed that they be taxed as indicated by the valuation payment scheme.
Current situation
Capping and dispersion in the calculation of the tax.
Lack of progressivity in the tax, due to the inflation recorded in the last decade.
Due to this lack of updating, 99% of the total universe of items (2,004,740) are in the same range and with the highest rate.
Objective
Restructure the way ABL is calculated to make it more progressive and equitable.
In 2018, the ABL rate represented 4% of the revenue, while in 2024, it represents only half, 2%.
The ABL tax revenue covers only a third of the cost of the service.
New proposal
Table with a higher and better level of disaggregation, going from 7 to 10 scales.
Incorporation of geographical coefficient into the calculation of the rate.
The new scheme includes zone bonuses.
Proposal for zonal bonus
It will be applied according to the geographical location of the property.
According to Law 2568/07, different coefficients are established, where the value 0 corresponds to Barracas Sur, the value 1 to Caballito Centro and the value 2 to Puerto Madero.
In this sense, the application of the bonus would be as follows:
Impact of the proposal (with and without zonal bonus)
Regarding the percentage variation of the 01/25 rate with respect to the 12/24 rate, scenarios of the new tax update proposal are presented, with and without the bonus by zone:
Proposal without zonal bonus (full impact):
? 12% of the total items will have an update of up to 50%
? 31% between 50 and 100%
? 57% of the register, more than 100% tax update.
Proposal with the zonal bonus included:
? 85% of the total items will have an update of only up to 50%
? 15% between 50 and 100%
? There will be no tax updates greater than 100%
Current situation
To request the exemption, the current regulations establish that the 2011 Tax Valuation must not exceed $75,000.
This requirement is completely outdated and it is difficult to access the 2011 Tax Valuation, which complicates obtaining the exemption.
The other requirement is to receive a salary equal to or less than twice the minimum living wage or two and a half times the minimum retirement, whichever is greater.
As of June 1, 2024, there are 79,791 retirees and pensioners who are exempt, totally or partially, from paying the tax.
New proposal
? For 2025, it is proposed to use as a reference the Homogeneous Fiscal Valuation of the property, with a maximum value of $30 million.
? It will be extended to more beneficiaries: starting next year, it will be a requirement to receive a pension equal to or less than three times the minimum pension.
? If they meet the requested 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.
? In the ongoing search for tax equity, this bill promotes the elimination of the exemption from the Gross Income Tax for the exercise of officially recognized university-level liberal professions.
? This measure includes those professional careers with a duration of no less than four (4) years and which are not organized as a company.
? The proposed rate is 3% starting in 2025.
Benefits for taxpayers
ABL/REAL ESTATE
Early payment: 10% discount.
Good payment performance: 10% bonus for good performance in 2025. It will be applied to each of the monthly installments for the year 2025, paying each one on time. Only for natural persons, items correctly titled and that do not record overdue debt.
Automatic Debit: 100% bonus on the last installment (Installment 12) for those who have added their payment to Automatic Debit before 06/30/2025. Only for individuals who have received the bonus for good payment performance and correctly titled items.
PATENTS
Early payment: 10% discount.
Good payment performance: 10% bonus for good performance in 2024. It will be applied to each of the bi-monthly installments of the year 2025, paying each one on time. Only for natural persons, correctly titled domains and that do not register overdue debt.
Automatic debit: 50% bonus on the last bi-monthly installment (Installment 6) for those who have added their payment to Automatic Debit before 04/30/2025. Only for individuals who have received the bonus for good payment performance and correctly titled domains.
Jorge Macri: “In the City we will not charge Gross Income Tax to professionals”
Following the presentation of the budget in the Buenos Aires Legislature, the head of the City Government, Jorge Macri, used his social networks to make some clarifications: “I want to be very clear on this: at no time did I consider eliminating the gross income exemption for professionals as an option for next year.”
"The information that has been circulating is derived from a working draft that AGIP presented to us as a proposal, based on a criterion of tax equity, but which was not advanced nor was it presented to the Legislature," he added.
He concluded: “In this context of crisis, not charging gross income to professionals is not only an economic decision but also a political one.”
Source: https://www.noticiasurbanas.com.ar/ |
