Overview

Description

The government of Argentina implemented a carbon tax (impuesto al dióxido de carbono) on January 1, 2018 for most liquid fuels, replacing previous fuel taxes. The carbon tax is also levied on some solid products (mineral coal and petroleum coke). Although the Law that created the tax (Law 27.430) entered into force in January 2018, the carbon tax is applicable since March 2018 for most of the leviable products. For fuel oil, mineral coal, and petroleum coke, the tax rate has been applicable gradually. It became operational in January of 2019, at 10% of the full tax rate, and is set to increase annually by 10% to reach 100% in 2028.

Recent Developments

The carbon tax increased 44% (gasoline) and 52% (gasoil) between December 2024 and December 2025

Coverage

The Argentina carbon tax applies to CO2 emissions from all sectors with some exemptions for certain sectors. The tax covers most liquid fuels (except fossil gas) and some solid products (mineral coal and petroleum coke).

Pricing and Allocation Approaches

Set price

Compliance Approaches

Monthly

Relation to Other Compliance CPIs

Not Specified

Covered Sectors

Industry

Mining and extractives

Transport

Aviation

Agriculture, forestry and fishing fuel use

Electricity and heat

Buildings