This is the second Budget presented to Congress with goals agreed upon with the body after the renegotiation. The one from 2022, sent by the then minister Martin Guzmanwas not approved by Congress, so the Government had to extend the previous year’s.
The project for 2023 includes a series of modifications to taxes or special regimes. This factor had also been discussed with the international credit agency. As estimated from the Secretary of Finance climb up to 2.4% of GDP. to be modified all the regimes that it includes, it could not only reduce the deficit but also reach a surplus up to 0.5%.
The text expressly details that there are “tax benefits that specific sectors of society receive at the expense of the sustainability of public accounts” and later adds: “The relative weight of these benefits is a fact that has drawn the attention of the IMF authorities. Indeed, in a recent press release, said institution has recommended the evaluation of their effectiveness.”
Later he presents a set of tax expenditures (that is, the amount that the treasury stops receiving for these regimes) that concentrate 60% of the total and is detailed in amount in pesos and as a percentage of GDP.
Among the expenses that it details, it includes the revision of the reduced VAT rates for some sectors, the income tax for NGOs and cooperatives, and the Regime for the Economic Promotion of Land of Fire. For the latter, they point out that the expense amounts to 0.35% of GDP and proposes the gradual reduction of the benefit.
According to the calculation of the Treasury, the Exemption of Earnings to the Judiciary In 2022, it represents a tax expense of $129,105 million, the equivalent of 0.16% of GDP. By 2023, that spending amounts to $237,850 millions, also equivalent to 0.16% of GDP estimated for that year.
Finally, in the text they add that “it would not contemplate a public policy associated with this benefit. Negatively influences equity, equality and progressivity of the tax in relation to the rest of the salaried taxpayers”.
Source: Ambito
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