Mayors demand that MPs benefit from value-added tax

Mayors met with representatives in Congress to demand that this be taken into account in the tax reform with a reduction in value-added tax

11/27/2025 – 09:07 AM

Last Tuesday, the Municipal Affairs Committee of the House of Representatives held a crucial media meeting, within the framework of discussions on the upcoming tax reform, in which it received… Mayors from all sectors who demand consideration of the value-added tax.

What happened at the mayors’ meeting?

The call was promoted by the Chairman of the Committee, the Deputy of Córdoba, Juan Brugue (Federal Meeting), with the aim of Listen to proposals and discuss them with municipal leaders.

The meeting brought together members of the Legislative Committee with senior representatives of the Federal Council of Mayors (COFEIN) and the Argentine Federation of Municipalities (FAM).

Among the main attendees who presented to the deputies were Fernando Espinoza (President of FAM and Mayor of La Matanza), Rosana Chahla (Mayor of San Miguel de Tucuman, for COFEIN) and Vice Mayor of Córdoba Capital, Javier Brito (COFEIN). Mayor Julio Alaque (La Plata) was also present.

Vice Mayor Brito made the most resonant call today, urging the need to ““Reach a major tax agreement” that includes the three levels of government in a transparent and rational manner: Nation, provinces and municipalities.

What is the initiative that came from the House of Representatives?

The main focus of the meeting was the submission of a joint document by the mayors, with an official request to do so Inclusion of this proposal in the tax reform law Which the government of Javier Miley will send to Congress.

The central initiative consists of direct financial relief to local governments: Reducing value added tax from 21% to 10.5% on all purchases, works and contracting Implemented by municipalities.

Representative Juan Brugge considered it “the right time” to listen to local community leaders, pointing out that municipalities face “very strong inequality” in the current tax system.

What is the argument for reducing VAT?

The document presented by the mayors confirms the following: The difference is from the private sector which can deduct VAT as a tax creditMunicipalities are considered the final consumers. This means that they cannot recover the VAT they pay, which automatically increases operating costs by more than 20%.

The mayors said that this full value-added tax will be applied to their purchases It translates into a higher cost of public works and services Essentials for neighbors.

Therefore, a tax reduction would allow them to free up resources to invest directly in their communities, improve service delivery (such as security, health, works) and even It can generate space to reduce municipal rates.

The discussion has also served mayors like Julio Alaque to highlight Difficulties of balanced management in the context of resource scarcity and, in some cases, unequal transfers. The widespread demand focused on the need for more equitable fiscal federalism.