TAX ON LIQUID FUELS AND NATURAL GAS

Law 26,942

Law No 23,966. Amendment. Sanctioned: May 28, 2014 Enacted: June 17, 2014

The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:

ARTICLE 1-Substitute Article 4 ° of Chapter I, Title III of Law 23.966, of tax on liquid fuels and natural gas, ordered in 1998 and its amendments, by the following:

Article 4 °: The taxable products referred to in Article 1 and the tax rates are as follows:

Alicuota Concept

a) Unleaded Nafta, up to 92 RON 70%

(b) Non-lead Nafta of more than 92 RON 62%

c) Nafta with lead, up to 92 RON 70%

d) Nafta with lead, of more than 92 RON 62%

(e) virgin Nafta 62%

f) Natural gas 62%

g) Solvente 62%

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The taxable amount to be taken into account for the purposes of the liquidation of the tax applicable to virgin naphtha and natural gas shall be that corresponding to unleaded naphtha of more than 90% and two (92) RON. The amount resulting from the liquidation of the tax charged by those responsible for the tax liability may not be less than that resulting from the application of the unit of measure tax amounts as set out below:

h) Needles 62%

(i) Gasoil 19%

j) Diesel oil 19%

k) Kerorene 19%

Concept $per litre

a) Non-lead Nafta up to 92 RON 0.5375

(b) Unleaded Nafta, of more than 92 RON 0,5375

c) Nafta with lead, up to 92 RON 0.5375

d) Nafta with lead, of more than 92 RON 0.5375

e) Nafta virgin 0.5375

f) Natural gas 0.5375

g) Solvente 0.5375

h) Aguarras 0.5375

(i) Gasoil 0.15

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They shall also be taxed with the aliquot applied to naphthas of more than ninety-two (92) RON, the products consisting of a mixture of hydrocarbons, in so far as they qualify as naphthas according to the technical specifications of the regulatory decree, even if they are used in an intermediate stage of production, non-combustible destination or are incorporated into untaxed products, except where Article 7 (c) (c) applies. Power to the national executive branch for the implementation of the differentiated aliquots for fuels falling under (a), (b), (c), (d) and (i), where the taxed products are intended for consumption in frontier zones, for correcting asymmetries originating in exchange rate variations. Such differentiated aliquots will be applied on the volumes that to this effect will have for the respective border zone the national executive branch. The national executive branch shall determine, for the purposes of this law, the technical characteristics of the taxed products, not being able to give retroactive effect to this characterization. The national executive branch is empowered to incorporate into the charge products that are liable to be used as liquid fuels by fixing an aliquot similar to that of the taxed product that can be replaced. In the Alconaftas the tax will be totally satisfied with the payment of the levy on the naphtha component. In the fuel biodiesel the tax will be totally satisfied with the payment of the lien on the diesel component or other component taxed, not being able to modify this treatment until December 31, 2015. Pure biodiesel may not be taxed until that date. The national executive branch shall be empowered to extend the period laid down in the preceding paragraph.

ARTICLE 2-Substitute Article 1 of Law 26,028, which follows:

Article 1 °: Establish in all the territory of the Nation, with specific affectation to the development of the road infrastructure projects and/or the elimination or reduction of the existing tolls, to make effective the tariff compensations to the companies of public passenger transport services by car, the allocation of funds for the improvement and professionalisation of freight transport services by car and the subsidies and investments for the passenger rail system or of cargo, in such a way that it incites in one of the stages of its circulation, a tax on the transfer for consideration or free of charge, or import, of diesel or any other liquid fuel replacing it in the future, which shall apply until 31 December 2024. Biodiesel that is used as a liquid fuel in the generation of electrical energy shall be exempted from this tax until 31 December 2015. The national executive branch should be empowered to extend the period referred to. The tax referred to in the first subparagraph shall also apply to the fuel used by the person responsible, except for the fuel used in the manufacture of other products subject to it, as well as any difference in inventory. to determine the Federal Administration of Public Revenue, an autarchic entity in the field of the Ministry of Economy and Public Finance, provided that

j) Diesel oil 0.15

k) Kerorene 0.15

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the difference for reasons other than the assumptions of taxation cannot be justified. For the purposes of this levy, the fuel oil shall be defined as such in Article 4 of the Annex to Decree No 74 of 22 January 1998 and its amendments to the tax on liquid fuels and the natural gas. Taking into consideration that the Ministry of Federal Planning, Public Investment and Services, the Ministry of Energy has issued the technical standards that make it possible to use liquefied gas for automotive use, the transfer of fuel, in the case of charging stations for captive fleets, will be achieved by this tax.

ARTICLE 3 °-Commune to the national executive branch.

GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE TWENTY-EIGHT DAYS OF THE MONTH OF MAY OF THE YEAR TWO THOUSAND FOURTEEN.

-REGISTERED UNDER NO 26,942-

JULIAN A. DOMINGUEZ. -BELOVED BOUDOU. -Lucas Chedrese. -Juan H. Estrada.

Date of publication: 24/06/2014

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