On this point, ADEBA highlights three fundamental factors for the low level of banking in the last 20 years: instability in the value of the peso and the high tax pressure on users of banking services.
Taxes
The entity considered that “companies and individuals that use the financial system are subject to an excessive tax burden -national, provincial and municipal- that is unmatched by any other country in the region or, surely, in the world.
All these charges and taxes end up making the credit and payment operations carried out by bank users more expensive.
The users of the financial system have paid $750,000 million pesos in ICD alone in 2021, which is equivalent to more than the sum of what is collected from import duties, statistical rates and fuel taxes.
The $ 535,000 million paid only in the first half of 2022 and only by ICD are equivalent to more than 75,000 pick-up trucks 0 km. This gives an order of magnitude of the burden that financial users had to bear for making payments and transfers in the financial system and payment service providers.
Average
Meanwhile, in a study commissioned by ADEBA from the Mediterranean Foundation, it is noted that “Taxes represent on average 44% of what is paid when taking out a loan, while the interest rate without taxes represents the remaining 56%”.
“That is to say, the taking of loans, both for production and for consumption, is penalized and discouraged by the high tax burden of the Nation, Provinces and Municipalities”, highlights the study entitled “Impact of taxes on the cost of taxes on the cost of financing in Argentina”.
Conclusions
Javier Bolzico, president of ADEBA, reflected: “It is time to analyze how to lower the burden that the Nation, Provinces and Municipalities impose on companies and people who take loans and use financial services.”
“Current tax levels are not compatible with a vigorous bank credit market and broad financial inclusion,” he added.
By way of closing, the entity considered that “changing the current situation requires defining what is the total tax levy on the economy (companies and people) compatible with inclusive growth with quality employment.”
“From there, the State must define its tax policy and assign the priorities of public spending,” the document concludes.
Source: Ambito
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