The Federal Chamber of La Plata validated the system that has been in place for 34 years and allowed Kicillof to continue increasing taxes
The Ministry of Justice replied with a lawsuit seeking the unconstitutionality of the measure and of Articles 39 and 40 of the Buenos Aires Tax Code. The federal trial judge granted an injunction that suspended the application of the resolution. Meanwhile, the Provincial State Attorney's Office appealed: it warned that the decision caused immediate fiscal damage and pointed out that federal issues were being advanced without granting the right to a defense.
The Court of Appeals agreed with the arguments of the Province. The court held that the preventive suspension lacked foundation and that, moreover, the current scheme had operated for 34 years without affecting the registry service. The judges highlighted that the suspension caused immediate harm: a drop of 225,000 million pesos (496,040,000 USD) was projected in 2025 revenue, key resources for sensitive areas such as health, education, security, and social assistance.
"There was clear and irreparable harm to the Province, while there was no impact whatsoever on the national government," the judges summarized.
Axel Kicillof's government took advantage of the ruling to present it as a political and legal victory. "The decision confirms local taxing powers and guarantees the continuity of a mechanism proven for over three decades," officials in La Plata emphasized.
The truth is that, beyond the "federalism" rhetoric, the measure provides fiscal relief for a governor who continues to resort to new revenue-raising mechanisms. With this decision, Buenos Aires residents will continue to face an increasingly extensive and persistent tax collection system, which is sustained by inefficient state structures and deepens the tax burden.
Chamber I of the Federal Court of Appeals of La Plata overturned the injunction that had halted Regulatory Resolution 26/2024 of the Buenos Aires Province Revenue Agency (ARBA). With this decision, the Sectional Registries of the National Directorate of Motor Vehicle Property (DNRPA) will continue to act as collection and withholding agents for Automotive and Stamp Taxes, a practice that has been in place for over three decades.
The court—composed of judges Roberto Agustín Lemos Arias and César Álvarez—warned that interrupting the scheme "would cause serious harm to the Buenos Aires treasury without causing damage to the national government." The court also emphasized that administrative acts are presumed valid and that injunctions seeking to suspend them must meet strict requirements, which in this case were not met.
This way, the judiciary gave a boost to the provincial administration and a setback to the strategy of the Ministry of Justice of the Nation, which had promoted the action against ARBA's regulation. The Buenos Aires government was quick to celebrate: it described the ruling as "a triumph of federalism and provincial autonomy", and stressed that the measure "confirms the provinces' taxing powers and, in particular, their authority to administer direct taxes."
The collection scheme has its roots in the Service Complementation Agreement signed on October 3, 1991 between the Buenos Aires Ministry of Economy and the Ministry of Justice of the Nation. That agreement authorized the heads of sectional registries located in Buenos Aires territory to register as provincial tax withholding agents, collecting amounts at the time of processing transactions.
However, on August 30, 2024, the national Ministry of Justice denounced that agreement through Resolution 276, in line with its administrative deregulation policy. On September 4, the DNRPA formally notified ARBA of the termination of the agreement. Despite this, the Buenos Aires agency issued Regulatory Resolution 26/2024 on September 27, which imposed the continuation of the registries' obligation as collection agents.
