In this sense, the head of the Federal Administration of Public Revenues (AFIP), Carlos Castagneto, affirmed this weekend through his social networks that “it is a myth” that Argentina has a high tax pressure. Instead, from the private sector they argued with the official, pointing out that he does not take tax evasion into account when evaluating the burden on those who pay.
“Brazil and Uruguay, to name neighboring countries, have higher pressure. The same is observed in the average of developed countries,” Castagneto said through his Twitter account. 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%. “Not even the investors themselves consider that tax pressure is a primary factor when deciding where to make an investment,” Castagneto said, showing a graph on the main reasons why Foreign Direct Investment defines its locations, in the The tax pressure is not included.
In this regard, César Litvin, head of the Lisiki, Litvin y Asociados study, pointed out that “what must be distinguished is the fiscal burden on taxpayers who pay taxes.” Litvin said that if we add informality to the equation, the effect is that the burden on those who pay increases. In other words, the tax expert considers that for the Argentine State to achieve a tax collection equivalent to 29% of GDP, which is equivalent to that of a developed country, those who pay have to pay more to cover what they do not pay because they are in the erratic economy.
A concept used by specialists in tax matters is that of Legal Tax Pressure (PTL) differentiated from Real Tax Pressure (PTR). This second is calculated as a ratio between tax collection over GDP. On the other hand, the legal one represents the collection potential that there would be in case of zero evasion with respect to GDP. In Argentina, with levels of irregular economy in the order of 34% to 35%, the difference becomes pertinent. For some analysts, if tax evasion could be reduced, the deficit problem could be solved. Others argue that it is necessary to reduce taxes to collect the same with a regularized economy.
A report by the Mediterranean Foundation from January this year indicates that, if the PTL is taken, measured on family income, the pressure in Argentina would reach 48%, as in Italy, and behind Brazil with 50%. . Spain has 40.7%, the United States 37%, Chile; 34.3% and Australia, 29.1%. 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%).
To all this, in the Chamber of Deputies, the opposition presented its own opinions on the bills to extend the validity of taxes that expire at the end of the year, such as the case of Profits, which is one of the pillars of treasury income. national. There, they propose modifications, but the controversy broke out. In this sense, the tax lawyer Martín Litwak considers that Together for Change should “drop” the taxes and negotiate later. On the other hand, the economist and deputy Martín Tetaz, points out that “the State cannot be defunded.” In fact, criticizing the extreme position of Avanza Libertad, he ironically pointed out that, if Milei were elected president, he would propose a law to repeal all taxes. The legislator points out that “Income Tax is the main tax in the world and there is no country that works, that does not have it.”
Carlos Lamiral
Source: Ambito
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