As reported by the Palacio de Hacienda, last month the Income Tax registered a rise of 118% to $396,759 million. Thus, this tax recorded a real increase of 48%. On the other hand, the other pillar of collection, the Value Added Tax (VAT) had revenues of $490,806 million, with a rise of 82.1% nominal and 12 points more than the accumulated inflation. “In this way, the succession of months with positive figures for this tax adds up to nineteen cases, with the exception of October 2021,” highlights a report from the Center for Argentine Political Economy (CEPA).
The Palacio de Hacienda explained that the collection of taxes in July was driven mainly by the performance of the VAT, the Income Tax, the taxes associated with Social Security and the Tax on Personal Assets. In the case of Social Security, Personal Contributions registered entries for $175,042 million, with a nominal increase of 78.6% and 8.6% in real terms. On the other hand, Employer Contributions, had revenues of $254,108 million, with a rise of 81% nominal and 11% real.
On the other hand, taxes linked to foreign trade began to show the seasonal effect. The withholdings on exports had a nominal growth of 44.2%, which implied a fall of 25.8% in the real, with a product of $110,414 million. On the other hand, tariffs and the statistical rate levied on imports generated some $54,330 million, with a real rise of 7.3%. Meanwhile, the Tax on Personal Assets registered a strong rise of 300% nominal, to $31,774 million, while the PAIS Tax, linked to the purchase of dollars for hoarding, grew 318.5% nominal to $41,795 million.
Economy indicated that “the taxes that grant progressivity to the system registered, as a whole, an increase of 126.4%”. “This increase was, on the one hand, the product of the entry of the second installment of the payment facility plan for the balance of the 2021 financial year and the second advance payment for the 2022 financial year of the Companies with balance closing in December, corresponding to Tax on Earnings”, states the official report. It also impacted the entry of the first installment of the payment facilities plan for Human Persons, added to the remainder of sworn statements not entered in the month of June. This factor also influenced the growth of Personal Assets.
July turned out to be a particular month, due to the fact that during the period there was an Economy Minister, Silvina Batakis, who was in office for 24 days, who arrived with the tax imprint of keeping spending at bay. This situation, at the same time, coexisted with growing financial and exchange instability. Faced with this, the income of the AFIP seems not to have flinched.
The economy moved with a high rate of inflation. According to estimates from different consultants, prices grew by at least 7% compared to June and have accumulated an increase of 70% in the last twelve months. The exchange crisis and the increase in the sale of official dollars for hoarding or consumption with credit cards was also reflected in the jump in income from the 35% tax on the purchase of tickets.
Carlos Lamiral
Source: Ambito
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