# San Nicolás municipal tax reform proposal > Live situation record from CLSTR: https://clstr.news/situations/san-nicols-municipal-tax-reform-proposal > Updated: 2026-10-14T23:06:17.000Z. Sources: 8. Developments: 2. Santiago Passaglia, the mayor of San Nicolás, has proposed a reciprocal tax reform initiative titled ‘IVA 0 – TASA 0’ to Argentina’s Minister of Economy, Luis Caputo. The proposal seeks to address tax pressure by suggesting that the national government exempt municipal purchases for public works and services from the 21% Value-Added Tax (IVA). In exchange, municipalities would eliminate the local ‘Tasa de Seguridad e Higiene’ (Safety and Hygiene Tax) currently paid by businesses and industries. The initiative serves as a response to President Javier Milei’s suggestions that municipal leaders bear responsibility for local tax pressure. Passaglia argued that citizens face burdens from all levels of government and proposed using electronic tax certificates to offset costs. The proposal notes that high tax pressure in the Province of Buenos Aires has correlated with industrial job losses. Implementation of this framework would require enabling legislation from the National Congress. ## Timeline ### 2026-10-14: San Nicolás Mayor proposes reciprocal tax reform to Luis Caputo San Nicolás Mayor Santiago Passaglia proposed the ‘IVA 0 – TASA 0’ plan to Minister Luis Caputo, seeking national VAT exemptions for municipal works in exchange for eliminating local business taxes. 6 sources. https://clstr.news/cluster/san-nicols-mayor-proposes-reciprocal-tax-reform-to-luis-caputo ### 2026-10-12: San Nicolás mayor proposes tax swap to offset municipal costs San Nicolás mayor Santiago Passaglia proposed eliminating local Safety and Hygiene Taxes if the national government waives VAT on municipal public works, amid reports of industrial decline in Buenos Aires. 2 sources. https://clstr.news/cluster/san-nicols-mayor-proposes-tax-swap-to-offset-municipal-costs --- Cite as: San Nicolás municipal tax reform proposal. CLSTR, https://clstr.news/situations/san-nicols-municipal-tax-reform-proposal