Córdoba Mayor Daniel Passerini proposes tax code reform

Córdoba Mayor Daniel Passerini has submitted two urgent legislative projects to the City Council to modernize the Municipal Tax Code. The reform aims to modify the retributive tax applied to commercial, industrial, and service sectors, which currently accounts for two-thirds of the city's total revenue.

The move follows significant legal challenges. Recently, the Supreme Court of Justice annulled a previous ruling regarding Banco Galicia, with Chief Justice Horacio Rosatti noting that the city's tax formula exhibited “enormous laxity.” Additionally, the logistics company Loginter S.A. has filed a complaint with the Federal Tax Commission (CFI) questioning the constitutionality of the tax.

The proposed changes seek to explicitly define the services provided to taxpayers and exclude certain income from the tax base, specifically revenue from investments in municipal debt securities. This legislative push comes as the municipality faces a 10% decline in real income amid reduced national subsidies.