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Governors’ Fuel-Tax Redistribution Bill Falls in Argentina’s Lower House

A disputed absolute-majority requirement left the governors’ fuel-tax bill three votes short in the lower house.

Overview

  • The roll call ended with 126 in favor, 7 against and 5 abstentions, short of the 129 absolute majority Chamber president Martín Menem said was required.
  • Menem cited Article 75(3) on specific allocations of coparticipated resources, a reading rejected by opposition figures such as Germán Martínez and Nicolás Massot.
  • Several governors who had backed the measure were blamed for decisive absences, including Osvaldo Jaldo of Tucumán, Alberto Weretilneck of Río Negro and Gustavo Sáenz of Salta.
  • The proposal would have amended Law 23.966, dissolved national fiduciary funds for water infrastructure, transport and housing, and reallocated fuel-tax revenue with 57.02% to provinces and 28.69% to the social security system.
  • The Senate had approved the text earlier, and the defeat triggered recriminations across blocs over attendance and responsibility, leaving revenue-sharing and fund reform unresolved.