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Another blow to the pocket: car license plates increase more than 180% this year

2024-03-07T12:27:08.105Z

Highlights: The average annual increase in the tax for 2024 (considering the comparison between the different vehicles) will be 180.4%. This year, the pressure for users is higher because there are no longer bonuses for paying this tax. Last year there was a discount that reached 20% (10% for payment on time and 10% for adhering to automatic debit or invoice by email) which will no longer be available this year. The maximum rate in the table is reduced to 5% (last year it was 5.37%) and a progressive structure of rates is maintained.


It is the increase for vehicles in the Province of Buenos Aires.


The increase in car prices "brought" a new increase in pockets during March: that of

the license plates paid for vehicles in the province of Buenos Aires.

This average annual increase in the tax for 2024 (considering the comparison between the different vehicles)

will be 180.4%,

as specified by ARBA, the agency that collects license plates for 1,823,102 vehicles in the Province.

Users began to be notified with the arrival of the new installments: for example, a 2015 Ford Fiesta that they paid

$10,840 in December of last year, now must pay $40,050

.

Or a 2016 VW Fox went from

$10,963 to $41,111.40

in the same period.

It happens that, to establish the fees to be paid by users, ARBA takes the price base published every month by ACARA, the dealer association.

“ARBA always charges the same rate.

What changes are the scales so that, when the vehicles increase in value, they do not all go to the highest scale,” explained a source from that organization.

Therefore,

patents suffered the same fate as car prices

.

However, they highlight that the 180.4% increase is lower than the inflation forecast by the Government (288%).

This year,

the pressure for users is higher because there are no longer bonuses

for paying this tax.

Last year there was a discount that reached 20% (10% for payment on time and 10% for adhering to automatic debit or invoice by email) which

will no longer be available this year.

For this reason, many people will compare what they paid with the bonus, and

perceive that the increase is greater.

Among other aspects, this year's tax law established that:

  • "The 2013 models are decentralized to the municipalities" (that is, cars from that year and older stop paying the license plate to ARBA to pay a municipal tax).

  • "With respect to the 2023 Tax Law, the valuation brackets are adjusted to achieve uniform distribution of vehicles between brackets."

  • The maximum rate in the table is reduced to 5% (last year it was 5.37%) and a progressive structure of rates

    is maintained ,

    with an increase in rates in the first sections (this value coincides with that in force in another comparable jurisdiction , like the Autonomous City of Buenos Aires).

  • A limit of 140%

    increase is set

    for vehicles taxed up to $6,510,000, some 534,666 vehicles, 29% of the vehicle fleet that pays for the Patent in PBA.

  • A limit of 200% increase is set for vehicles taxed up to $18,000,000, some 1,122,700 vehicles, 61% of the vehicle fleet that pays for the Patent in PBA.

  • The limit is released for the last section, the most valuable vehicles, which have a tax valuation greater than $18,000,000, 10% of the vehicle fleet paid for by the Patent in PBA.

    “In this way, work is being done on the tax structure to give the tax a little more progressivity, which is one of the objectives,” they commented in ARBA.

Regarding

the degree of collectibility

of this tax, it is in the order of between

70% and 75%.

Those percentages line up those who pay in a timely manner and with some delay.

This portion of motorists who are up to date with the tax did not decrease much during the pandemic, according to ARBA.

It remains to wait to see if now, with the increases that are coming this year, the level of collectibility drops, given that

the patents are added to other weight increases in goods and services

that the population must face with salaries that do not match the same. speed.

NE

Source: clarin

All business articles on 2024-03-07

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