Blanco proposes a reduction that covers all consumption but in particular includes the reduction of the differential rate that is applied to “sales of gas, electricity and water regulated by meter”, set at 27%. For these cases, the senator from Together for Change proposes lowering it to 25% from 2023, to 23% from January 2025 and finally to 21% from 2027.
In the letter, he explains the reasons: “In our country, inflation is an unregulated tax that does terrible harm to the poorest. Argentina has suffered from it for 18 years, being one of the highest in the world. Another tax that makes a great harm and that is part of the legislation, is the Value Added Tax (VAT), a regressive tax like no other because it represents a greater burden for consumers and individuals with lower incomes”.
“Studies of all kinds have been carried out and, in general, it is clearly concluded that the tax paid in proportion to disposable income will be lower in the more affluent sector of the population and higher in low-income sectors.. The higher the regressive taxes, the more they will contribute to social inequality since they represent a greater burden for the poorest than for the rich”, she added.
“For 25 years, aid has been promised to the most needy and the tax that punishes them the most is the only one that never decreases, on the contrary, it increases.
For this reason, I consider that it is necessary to progressively reduce the rate of the tax until after 6 years it reaches fifteen percent (15%) of the rate, similar to the one established at the end of the 1980s and the beginning of the 1990s. In this way, relief will be provided to the most needy, who allocate practically all of their income to the purchase of food and basic necessities,” the senator concluded.
Source: Ambito
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