Taxes: How the rate hike impacts defaulters

The increase in financial rates has been one of the instruments used by the national government to contain the dollar and inflation. This has severely hampered the economy, as although the measure is expected to be relatively temporary, financing was already high before the measure was taken.

In this context, both the Central Administration and the municipalities of Greater Mendoza explained their current policy regarding defaulters . In general terms, the reference rate is always that of the Banco Nación (BNA) as the financial agent of the Government of Mendoza.

However, various municipalities have come forward to establish either a rate reduction or a reduction in the amount of the tax for compliant taxpayers. Similarly, the implementation of funding depends on the current legislation.

Tax revenue in general is being affected not only by the decline in activity, which, in the second quarter of 2025, was 0.1% after three positive quarters. This figure was published last week by INDEC in its Monthly Estimator of Economic Activity (EMAE). The situation also logically impacts families' ability to make ends meet and, therefore, stay current with their taxes .

Banco de la Nación (BNA) financing rates vary depending on the product, term, and customer. Thus, they are not the same for car, home, or consumer purchases. However, the Annual Nominal Rate (ANR) is currently around 38%, to which the Total Financial Cost (TFC) must be added, resulting in a rate of almost 60%.

SMEs, for their part, can currently access rates of around 45-50% per year. The high cost is a source of complaints from various business sectors, with the resulting slowdown in the economy.

Aware of this situation, the public sector has sought to adapt to the ongoing crisis. Specifically, to reduce the number of taxpayers already excluded from the system due to the recession. However, with a few exceptions, the rate adjustments have been made throughout the year, in line with the financial sector, although always below traditional rates. Meanwhile, one municipality decided to lower interest rates to relieve its taxpayers.

The Mendoza Tax Administration (ATM) reported that the ATM interest rates for debtors have not been updated. However, they clarified that an adjustment was made two months ago and that a new calculation will likely be made in January. They added that the reference interest rate, which serves as a ceiling, and inflation, which serves as a floor, are always taken into account.

The Guaymallén Municipality reported that the rate for defaulters is 3.5% monthly and 4.5% for judicial payments. They added that according to municipal regulations, the rate cannot exceed 1.5% of the Banco Nación rate.

For their part, spokespersons for the municipality of Luján de Cuyo stated that those who owe local taxes must pay with financing approved by the City Council. In this case, it is the nominal lending rate of the Banco Nación.

Both the province and municipalities are implementing payment reductions for those who are current. However, the City of Mendoza announced in July a 50% interest rate reduction for delinquent debtors and those on payment plans. The measure, it was explained, "aims to ease the financial burden on taxpayers."

Thus, the 6% rate charged for compensatory interest, both for overdue debts and for financing plans, was reduced to 3%. The measure went into effect on August 1. The decision was proposed alongside an update to municipal taxes, also starting that same month.