As part of your messageADEBA listed the different taxes to which companies and individuals are subject who use the financial system. Furthermore, they categorize them as “bad taxes” that generate distortions and “cascade effect” on economic activityas well as that “they are unmatched in the region”.
For the Association, the taxes on bank credits and debits, known as check tax; on gross income from credit operations; to income from services rendered; income from BCRA liquidity instruments; stamps on cards and other financial operations; municipal rates for branches; municipal fees for ATMs and self-service terminals, as well as withholdings and perceptions of VAT and Earnings and IIBB on payment operations.
The latter, according to ADEBA“in practice they constitute a greater tax burden and discourage the use of financial services”. “These charges and taxes make credit and payment operations carried out by bank users more expensive and reduce the income received by depositors. All distortionary taxes, such as ICD, IIBB, disproportionate municipal taxes, end up being paid by the users of the financial system”indicate from the Association.
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Also, the Association draws attention to taxes on credits and takes a report from the Mediterranean Foundation as a reference. The same a maintains 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, the taking of loans, both for investment and for consumptionis penalized and discouraged by the high tax burden of the Nation, Provinces and Municipalities“, they point out.
Finally, ADEBA recommends that “in order to develop its economy, Argentina will need to substantially increase the volumes of deposits and bank loans the coming years”. In this sense, they believe that “It will only be possible by restoring confidence in the national currency and reducing the tax pressure that the Nation, Provinces and Municipalities exercise over the financial activity”.
For this, the Association proposes “that the three levels of government should carry out public spending policies compatible with a sustainable reduction of the taxes and rates that they impose on financial activity.” “It is time to analyze how to lower the burden that the Nation, Provinces and Municipalities impose on companies and people who take credit and use financial services. Only then will the conditions be met for the economy to have the necessary financing to promote inclusive economic development in the coming years.”end the statement.
Source: Ambito
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