Buenos Aires utility and tax administration updates

The state-run water utility AySA has submitted a tariff reform proposal to the Water and Sanitation Regulatory Entity (ERAS) in anticipation of its planned privatization on November 13. The proposal seeks to address collection inefficiencies and expand social tariffs by implementing a new territorial classification based on 2022 Census data and INDEC information to better reflect household income and location.

Under this plan, approximately 60% of residential users in the Buenos Aires Metropolitan Area (AMBA) would face an average increase of 22.6%, with some specific cases seeing hikes as high as 149%. For this group, the average monthly bill would rise from $29,116 to $35,710, excluding taxes. Conversely, 20% of users could see an average reduction of 14.7%, while another 20% would experience no change. The reform also includes a gradual phase-out of a 15% discount currently provided to certain users.

Local officials, including Buenos Aires Province Minister Gabriel Katopodis and Esteban Echeverría Mayor Fernando Gray, have criticized the proposal during public hearings, raising concerns regarding the potential halt of essential infrastructure projects and the impact of tariff changes on the population.

Separately, the Agency of Collection of the Province of Buenos Aires (ARBA) has introduced a tax debt regularization program. This initiative offers tiered discounts of up to 40% for lump-sum payments to help approximately 3.6 million taxpayers settle outstanding real estate, automotive, and gross income taxes. The program includes installment options and features decreasing discount rates through the end of the year.