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Argentina Suspends Fuel Tax Increases By Three Months

ARGENTINA
  • Argentina has suspended increases in fuel taxes by three months and Costa Rica is proposing freezing taxes as they battle soaring inflation and rising energy prices. (BBG)
  • Under a decree published on Monday, Argentina has delayed an increase in the tax on liquid fuels and carbon emissions to June 1. Additionally, Costa Rican President Carlos Alvarado will send legislation Monday proposing to freeze fuel tax increases for a year.
    • “Given that these are taxes on consumption and given that demand for liquid fuels is highly inelastic, variations in taxes are transferred practically directly to the final prices for the fuels,” Argentina’s government said in the decree.

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