In Argentina, taxes make up a significant portion of the cost of many goods and services. According to calculations by Focus Market, up to 77% of the interest rate on bank loans and 46.6% of the price consumers pay for gasoline are taxes. In the case of financial levies, the Nation takes 25%; the provinces, 8%; the municipalities, 4% (plus coparticipation), and only 40% remains as the net rate for banks. The rest goes to the State. In the case of gasoline, 41.5% goes to the Nation, 3% to the provinces, and 2.1% to the municipalities. Its impact at the pumps is close to 1% per month. The government of Javier Milei is trying to mitigate the transfer of the crude oil price increase due to the Middle East conflict to the price of fuels by suspending the application of a specific tax. Unlike other countries, Argentina has not only not lowered it, but on the contrary, the Ministry of Economy has ruled out changing the Tax on Liquid Fuels (ICL) and the Carbon Dioxide Tax (IDC), because the priority remains to sustain the fiscal surplus at any cost, a pillar of lowering inflation and long-term monetary stability. In the first two months of 2026, tax collection from fuel taxes totaled 870,558 million pesos (equivalent to more than 600 million dollars or 0.1% of the Gross Domestic Product, GDP). The Executive branch modified the schedule set in the previous regulation and moved the entry into force of pending increases for the Tax on Liquid Fuels and the Carbon Dioxide Tax to May 1st. This implies a new extension on adjustments that had already been deferred since 2024 and 2025, within a framework of a policy that seeks to avoid a full transfer of the tax burden to the final price of gasoline and diesel fuel. Deterioration of the tax According to the economic analysis of the Argentine Institute for Fiscal Analysis, the real value of the fuel tax had experienced a sharp deterioration since 2021. After remaining relatively stable since 2018—when it was around 570 pesos per liter in current terms—the lack of updating in a context of high inflation caused a sharp drop. The lowest point was recorded in January 2024, when the tax was equivalent to only 72 pesos per liter in real terms, which implied a loss of close to 88 percent compared to the initial level. From February of that year, partial recompositions began to be implemented, which allowed for the recovery of some lost ground. Currently, the tax is around 367 pesos per liter, which represents an improvement over recent lows, but it still remains 38 percent below the real level it had in 2018. VAT in finance In the case of interest rates and financial operations, the most important tax is VAT (Value Added Tax, 21%), although it is not the only one because there are also provincial taxes (Turnover Tax and Stamps). VAT is also applied to expenses (both monthly and annual renewal), which greatly increases the financing of balances and the use of the minimum payment. The Stamp Tax is computed on all monthly expenses. This does not apply if paid in dollars. When the card is renewed, a fixed amount is charged once a year, which many banks divide into two or three monthly installments. In addition to what the bank charges, you must add the Value Added Tax (VAT) of 21%. They can be applied as maintenance or summary sending expenses (although now, most are digital). It is only charged if we have to make a payment in that month (even if it is a direct debit). It is also taxed with 21% VAT and is higher if the card is international or if it is Premium. The provinces charge different rates.
