Key Benefits:
VISTO Issue No. 750-003104/97 of the Register of the MINISTERY of ECONOMY AND ARTWS AND PUBLIC SERVICES, and Title III of Law No. 23966 (t. 1998), of tax on Liquid Fuels and Natural Gas, and
CONSIDERING:
That Decree No. 1.212 of 8 November 1989 set the objective of oil deregulation policy, the alignment of local fuel prices with international prices, and the promotion of a fair and loyal competition on an equal basis for all companies operating in the sector, state and private, for the benefit of the general interest and of the users, aiming to improve the efficiency and productive allocation of the different segments involved, excluding the transfer of the activity
That Article 1 of Chapter I of Title III of Law No. 23.966 (t. 1998), of tax on Liquid Fuels and Natural Gas, establishes throughout the Territory of the ARGENTINA REPUBLIC, in such a way as to affect only one of the stages of its circulation, a tax on the transfer to a onerous or free title of the products of national or imported origin as detailed in the same article 4 of the legal text.
That the national tax system should operate in a neutral manner for all sectors involved in oil activity in such a way as not to create treatment asymmetries under which advantages can be generated that affect the competitive development of the sector.
That in the current conditions the liquidation regime of the Fuels and Natural Gas Tax, it generates significant economic and financial effects, which distort competition between similar products, generating advantages for companies acting as a passive subject of the tax provided for in Article 3 of Chapter I of Title III of Law No. 23.966 (t. 1998), for companies that do not have such status.
That Article 3rd paragraph (b) of Chapter I of Title III of Law No. 23966 (t. 1998), of tax on Liquid Fuels and Natural Gas, defines who can be performed as passive subjects of the tax, and in the case of traders, quantitative and administrative limitations have been established that have become a barrier to the income of the activity, which has affected the diversity of the domestic supply, limiting the way of the domestic supply.
To that end, it is appropriate to adequately regulate certain provisions of Chapter I of Title III of Law No. 23.966 (t. 1998), with the aim of eliminating the treatment asymmetries that are verified between the internal marketing of fuels and the supply of import fuels, in accordance with the basic provisions governing the activity.
That without prejudice to this and in the light of the principles of tax control, Article 3°(a) of Chapter I of Title III of Law No. 23966 (t. 1998) should be regulated, since it is appropriate to determine the conditions to which importing companies should be adjusted to be covered by the payment regime of advances established, deferring them from occasional importers.
That in accordance with this Decree, the NATIONAL EXECUTIVE POWER has issued Decree No. 1.016 of 29 September 1997, which has had the purpose of eliminating the distortions that exist at the stage of the development and industrialization of fuels with the aim of improving the financial exposure of the non-integrated refineries, reducing the asymmetries existing with the integrated refineries, empowering the EMINNERGY SUBITARIA
That Article 42 of the NATIONAL CONSTITUTION provides that public authorities shall provide for the defence of competition against any form of distortion of markets.
That the NATIONAL STATE has the undesirable mission to promote the competitiveness of the sector and to contribute through operational measures to ensure that fuel prices are transparent and competitive, the import being constituted in an essential tool for achieving that objective.
That the NATIONAL COMMISSION DEFENSA DE LA COMPETENCIA, Authority of Application of the Law n° 22.262, in order to process the complaint made by the SECRETARIAT OF ENERGIA dependent on the MINISTERY of ECONOMY and ARTWORKS and PUBLIC SERVICES against the companies "YPF SOCIEDAD ANONIMA", "ESSO SOCIED
That the presence of a segment of unlinked fuel vendors to oil companies through supply exclusivity contracts may have an important impact on market competition conditions.
That in this context, the technical studies carried out indicate that the development of a wholesale market for transparent fuels, with adequate storage and quality control services, and where conditions of competition may be provided in terms of price.
In this regard, it is appropriate to instruct SECRETARIAT OF ENERGIA under the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, to propose in a reasonable time the most appropriate measures for the promotion of the MERCADO MAYORISTA DE COMBUSTIBLES, complementary to the provisions of this Decree.
It is therefore appropriate to add to the Annex of Decree No. 74 of 22 January 1998, the Articles necessary to regulate the above-mentioned aspects.
That the General Directorate of Humanitarian Affairs of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICOS has taken the intervention that belongs to him.
That the present act is dictated in the use of the powers conferred on the NATIONAL EXECUTIVE POWER by Article 99(2) of the NATIONAL CONSTITUTION.
Therefore,
THE PRESIDENT OF THE ARGENTINA NATION
RIGHT:
Article 1.- Replace Article 2 of the Annex to Decree No. 74 of 22 January 1998, which regulates Title III of Law No. 23.966 (t. 1998), of the Tax on Liquid Fuels and Natural Gas, with the following:"ARTICLE 2°- MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS will complement the technical and economic requirements to be met by fuel marketers to access the quality of the passive subject of the tax, in accordance with Article 3 (b) of Chapter I of Title III of Law No. 23,966 (t. 1998), which must be exercised by ensuring the diversification of the domestic fuel supply market. "
Art. 2°- Add to the Annex to Decree No. 74 of 22 January 1998, which regulates Title III of Law No. 23.966 (t. 1998), of the Tax on Liquid Fuels and Natural Gas, the following Articles:"ARTICLE 14. For the purposes of the second paragraph of Article 2 of Chapter I of Title III of Law No. 23,966 (t. 1998), please note that the payment on account of the tax to be entered in conjunction with the customs duties and the Tax to the added value, by means of a perception in the source to be carried out by the General DIRECTION OF ADULES
| Nafta without lead, up to 92 RON | 7.5% | 22% | 22% | 22% | 26.5% |
| Nafta without lead, of more than 92 RON | 7.5% | 22% | 22% | 22% | 26.5% |
| Naphta with lead, up to 92 RON | 7.5% | 22% | 22% | 22% | 26.5% |
| Naphta with lead, of more than 92 RON | 7.5% | 22% | 22% | 22% | 26.5% |
| Gas Oil | 2.0% | 0% | 18% | 20% | 60% |
| Diesel | 2.0% | 0% | 18% | 20% | 60% |
| Kerosene | 2.0% | 0% | 18% | 20% | 60% |
| Date of expiry | Fire to square | 10 days from the office to square | 20 days from the office to square | 30 days from the office to square | 45 days from the office to square |
"ARTICLE 15. Without prejudice to the provisions of the preceding Article, the FEDERAL ADMINISTRATION OF PUBLIC INCOME, a decentralized agency within the scope of the MINISTERY OF ECONOMY AND ARTWORKS and PUBLIC SERVICES, will have the power to set new percentages for the application of the payment to account to be considered in all cases, the principle of the symmetry of treatment between the local market and the import
"ARTICLE 16. In order to ensure compliance with the obligation of payment provided for in Article 14, the importer shall submit to the General Directorate of ADUANAS under the FEDERAL ADMINISTRATION OF PUBLIC INCOME, a decentralized agency within the scope of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, prior to the dispatch to square a guarantee or bond for the amount of payment owed. For the purposes of this regime, the following types of guarantees are established:
In the event of total or partial non-compliance with the guaranteed payment regime, the enforcement of the guarantees shall operate in full and without further processing as provided by the General Directorate of ADUANAS under the FEDERAL ADMINISTRATION OF PUBLIC INCOME, a decentralized agency within the scope of the MINISTERY OF ECONOMY AND PUBLIC SERVICES. "
"ARTICULO 17.- Without prejudice to the application of the special payment regime established in Article 14, for the cases of fuels imported by the passive subjects of subparagraphs (a) and (b) of that Article, the period of stay under the destination of storage deposit referred to in Article 34 of Decree No. 1001 of 21 May 1982 shall be NOVENTA (90) days".
"ARTICLE 18. SECRETARIAT OF ENERGIA dependent on MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS shall create, as part of the "Registration of Petroleum Companies" provided for in Article 3 (b) of Chapter I of Title III of Law No. 23.966 (t. 1998), the section "Important and Commercializing Companies"; providing for the technical and economic requirements to be accredited by the passive subjects provided for in Article 3 (a) of the aforementioned regulatory body, for the inclusion in Article 14 of the Article
Those signatures that prove, appropriate economic and financial conditions, will be registered in such Register."
"ARTICLE 19. Without prejudice to the other legal and customs responsibilities that could correspond to the SECRETARIAT OF ENERGIA under the MINISTERY OF ECONOMY AND OURS AND PUBLIC SERVICES, you shall:
"ARTICULO 20.- Instruct the SECRETARIAT OF ENERGIA under the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICS so that, in addition to the records and information set out in the present, evaluate and take the measures to develop a MERCADO MAYORISTA DE COMBUSTIBLES oriented to:
