San Nicolás Mayor proposes reciprocal tax reform to Luis Caputo

Santiago Passaglia, the mayor of San Nicolás, has formally proposed a tax framework titled ‘IVA 0 – TASA 0’ to Argentina's Minister of Economy, Luis Caputo. The proposal suggests a reciprocal tax reduction mechanism between the national and municipal levels of government.

Under this plan, the national government would exempt municipal purchases for public works and services—such as paving materials and waste collection supplies—from the 21% Value-Added Tax (IVA). In exchange, municipalities would eliminate the ‘Tasa de Seguridad e Higiene,’ a local tax currently paid by businesses, SMEs, and industries.

The initiative follows comments made by President Javier Milei during the IDEA Colloquium, where he suggested that the responsibility for local tax pressure lies with municipal leaders. Passaglia responded by arguing that citizens face tax burdens from all levels of government and proposed this exchange to reduce costs for both public works and the commercial sector. Implementation of the framework would require enabling legislation from the National Congress.