2027 Budget Proposes Tax Benefits to Privatize National Routes

The 2027 Budget bill incorporates a scheme of tax incentives for new concessions aimed at building and maintaining national routes. The proposal also extends to expansions of existing concessions formalized after the eventual enactment of the law.

Article 67 establishes that these operations could be exempt from the Tax on Credits and Debits in Bank Accounts and Other Operations, known as the check tax. The tax could be credited against Corporate Income Tax, VAT, and employer contributions.

The planned regime also includes VAT tax credit certificates associated with the works and the possibility of applying accelerated depreciation of investments, with the aim of reducing Corporate Income Tax burden.

In return, the national Government proposes that provinces adopt exemptions for Gross Revenue Tax and Stamp Tax. The initiative had been announced by Economy Minister Luis Caputo, who linked tax reduction with an attempt to cheapen and expedite road investments.

The benefits were not included in the 2027 Budget's tax expenditure calculation. The incentives granted to companies entering the Large Investment Incentive Regime (RIGI) were also not included.

Following the first bidding processes related to approximately 9,000 kilometers of national routes, the Government plans to advance with additional processes for another 12,000 kilometers. The national network totals around 40,000 kilometers and is strategic for connectivity with agricultural areas, Vaca Muerta, mining, and other productive sectors.

The bill is part of a policy of reduced direct participation by the national State in infrastructure. For 2027, capital expenditure of $3.8 trillion is projected at constant values, approximately 80% below the level recorded in 2023, according to the analysis cited in the information.