Argentina Chamber of Deputies approves diversion of rural tax funds

The Argentine Chamber of Deputies has passed a law allowing 135 municipalities to use up to 100% of the funds collected from the Rural Real Estate Tax to finance hydraulic works for a period of 180 days. The measure, proposed by Senator Sergio Vargas, aims to prevent urban flooding caused by climate threats like 'Superniño', but it redirects money originally intended for maintaining rural roads and infrastructure.

The decision has drawn sharp criticism from agricultural entities, including CARBAP, which labeled the move as defunding essential rural infrastructure. Legislators from the opposition, including members of UCR-Cambio Federal and Coalición Cívica, faced backlash for their role in the approval process.

Separately, legislative progress on the 2027 Budget and the Biofuels Law has been postponed following pressure from the PRO bloc. The delay stems from demands to modify the biofuels project to protect small biodiesel producers in provinces such as Buenos Aires, La Pampa, San Luis, and Entre Ríos, who fear the current project will eliminate their market share by 2036.