Man speaking into a microphone during a conference next to a woman holding a glass of water, with flowers and water bottles on the table
ARGENTINA

The Municipality of La Falda has been charging an illegal tax since 2022

The levy, imposed by Dieminger without due process or accountability, hinders development and nobody knows its destination

Since December 2022, La Falda has been collecting a tax without legal backing or legislative process, incorporated into the building code without having been voted on. The levy was implemented by taking advantage of the World Cup fervor, three days after the final and without informing the public. There were no public hearings, no double reading, no modification of the fee schedule, violating the Municipal Charter.

In the vote on the ordinance, the article creating this tax was deliberately left out of the session, illegally added after approval. There was also no specific budget allocation for the funds collected, and the required commission was not formed, nor were the modifications published. The maneuver violated constitutional principles of legality and the reservation of law.

The session minutes prove that the article imposing this charge was never discussed, and even if it were an error, it would lack validity. The absence of legislative procedure makes it unconstitutional, affecting taxpayers' property rights. The municipality applied a 10% or 15% assessment on fees for any project larger than 350 m² (3,767 square feet).

This "phantom tax" hits the private sector, increases investment costs, and harms the local economy. The tax is collected without a specific purpose, entering general revenues, generating suspicions of embezzlement. The illegality is absolute and documented.

Colorful welcome sign to the city of La Falda with a clock tower in the background on a tree-lined street and a partly cloudy sky
Since December 2022, La Falda has been collecting a tax without legal authorization | La Derecha Diario

The first of what could be multiple lawsuits

Architect Jorge Alfredo Veliz is demanding the return of 4.6 million pesos illegally collected by the municipality. The payment was for "building rights" to approve plans, without legal or budgetary basis. His attorney reported violations of constitutional principles and requested interest and adjustments.

The lawsuit is for undue payment, unconstitutionality, and embezzlement of funds. Also for failing to comply with the legislative process and lacking a budgetary purpose. After a year without a response to his administrative claim, Veliz turned to the courts, tired of the constant municipal indifference.

Meanwhile, many construction workers protested due to the effects of the illegal tax. They state that it increases project costs and halts investments in the city, directly harming them. Bricklayers, architects, and material suppliers assert that the measure deeply affects their work activity.

The controversy grew when it became known that Veliz is being asked for 450 million pesos for a new project. There are also companies that had to pay amounts exceeding 100 million pesos to be able to build. In several cases, the tax doubled the value of the land, an economic and legal aberration.

Meeting of several people sitting around a table in a room with yellow walls; in the background, it reads
There is no reliable record that allows knowing the real destination of the funds collected | La Derecha Diario

Funds without purpose, zero transparency, and serious legal consequences

There is no reliable record that allows the real destination of the funds collected through these illegal and coercive practices in public spaces to be known. The lack of controls and audits allows the money to enter without traceability, creating a void that prevents any serious accountability. This opacity opens the door to diversion and corruption, while the public remains defenseless in the face of a scheme sustained with absolute impunity.

The failure to comply with basic financial administration rules undermines the unity and universality of public resources that should be guaranteed. By not respecting the principle of budgetary legality, a parallel collection mechanism outside any established legal or fiscal framework is normalized. This consolidates a system that erodes public trust and seriously weakens the legitimacy of the institutions that should safeguard the common good.

Two men smile and pose together on a street surrounded by a group of people, in a relaxed outdoor setting.
Javier Dieminger and Horacio Rodríguez Larreta, whose pre-candidate for deputy | La Derecha Diario
➡️ Argentina

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