Overview
- The package sent to the Legislature combines the 2026 budget projecting 43 trillion pesos in spending, a tax bill, and borrowing authority of up to US$1.99 billion to cover heavy maturities next year.
- Officials say 2026 brings about US$2.5 billion in provincial debt payments, including US$830 million in foreign-currency bonds split between March and September.
- ARBA’s tax proposal compresses the motor-vehicle tax from 15 to 5 brackets, lowers the minimum rate to 1% and the maximum to 4.5%, projects lower nominal payments for roughly 75% of owners, and shifts patente billing to 10 installments from March.
- The government pledges no real increase in the real-estate tax burden versus 2024, removes additional installments, and estimates 80% of property accounts will have installments under 12,000 pesos.
- In Ingresos Brutos, rates remain unchanged with reduced-rate brackets updated 40%, a regime that ARBA says covers 85% of taxpayers and benefits about 46,000 SMEs, without an extraordinary advance for large taxpayers.