The head of AFIP considered that it is a myth that Argentina has high tax pressure

The head of AFIP considered that it is a myth that Argentina has high tax pressure

There he published a table where it is highlighted that, in 2020, the fiscal pressure in Argentina reached 29.4%, measured as the relationship between tax collection and Gross Domestic Product (GDP). The graph shows that Uruguay and Brazil have a pressure of 30% while in France it is 45% and in Italy 42.9%.

In this regard, the official considered that Argentina “is an example” of a positive correlation between fiscal pressure and human development, according to data from the United Nations Development Program (UNDP).

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Not even the investors themselves consider that tax pressure is a primary factor when deciding where to make an investment.“, said Castagneto when showing a graph on the main reasons why Foreign Direct Investment defines its locations.

About, Cesar Litvinowner of the study Lisiki, Lítvin y Asociados, stated in statements to Noticias Argentinas that “what must be distinguished is the tax burden on taxpayers.”

Litvin said that if informality is added to the total equation, “the effect is that the burden on those who pay is increased.” In other words, the tax expert considered that, for the Argentine State to achieve a tax collection equivalent to 29% of GDP, those who pay have to cover what those who are in the irregular economy do not pay.

Litvin also said that “the inflation that exists in Argentina has the same effect as a tax, and if this is considered, Argentina is insurmountablein terms of fiscal pressure.

“On the other hand, we must take into account what is the remuneration in goods and services provided by the State. In Argentina, the person who pays taxes also has to contract private health, education and security services and on that they pay VAT,” he explained. .

When mentioning the issue of the tax burden, the tax expert slipped the concept of Legal Tax Pressure (PTL), which is what represents the potential collection (with zero evasion) measured on the Gross Domestic Product (GDP).

A report from the Mediterranean Foundation of January of this year, indicates that, if the PTL is taken, that is, if everything established by law is collected, the table places first Brazil, with 50.8%, followed by Argentina and Italy, with 48%; Spain, 40.7%, United States 37%, Chile; 34.3% and Australia, 29.1%, measured in relation to family income.

In the measurement of PTL on companies, in the case of hotel services, Argentina presents the highest legal tax pressure in relation to sales (35.1%), among the seven countries analyzed, followed by Italy (32.9%). in Milan), Chile (27.3%), Brazil, United States, Spain and Australia (17.9%).

Source: Ambito

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