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Castagneto rejected criticism of VAT collection and said that prices do not have to increase

Castagneto rejected criticism of VAT collection and said that prices do not have to increase

The head of the Federal Administration of Public Revenues (AFIP), Carlos Castagneto, rejected this Saturday the questions formulated to the new modality of perception of the Value Added Tax (VAT) that will begin to be applied on April 1, maintained that it does not represent a hidden increase in the rate and consequently the prices of the products reached “do not have to increase.”

In an interview with Télam, Castagneto attributed the criticism to “a political sector” that he did not identify, but of which he said that he proposes that “the Central Bank does not have to be there anymore and taxes do not have to be paid”, which would imply “the disappearance of the State”.

He also held that the VAT payment is “very low” in relation to the size of the economy and that the new perception will help “increase the number of taxpayers” and help generate a “more fair and equitable” tax system.

On February 10, the AFIP issued General Resolution 5329, which provided that as of April 1, a perception of 3% VAT will be applied to food sales (with the exception of meat, fruit and vegetables), beverages, personal hygiene and cleaning productswith a rate of 3% “on the net price of the operation that results from the invoice or equivalent document”.

The measure set an amount of $60 as the floor for that perception, from which it follows that it would reach sales of $2,000 or more.

After a series of claims, among which the one from the Argentine Federation of Professional Councils of Economic Sciences (Facpce) stood out, the AFIP modified the norm through General Resolution 5334 of March 21, which raised the amount to $3,000 , so that the minimum level of sales became $00,000.

We do not increase VAT As it is circulating around, we cannot increase a tax,” stressed the head of the AFIP, referring to those who maintain that the perception would imply a hidden increase in the rate.

Castagneto added that he had “the firm conviction that in different activities the payment of VAT is very low” and that it was decided to “start with the food part” to apply the perception.

He also remarked that with the measure “there is no reason to increase (the price of) foodbecause when you buy milk or noodles you already have VAT inside”.

“What we do is advance, the perception is an advance payment of the VAT until the moment of the affidavit, which in some cases is monthly and in others quarterly,” he indicated while pointing out that “at this time of crisis in Argentina and the world, what we want is a collaboration on the part of businessmen in those products that do not change their condition”.

In this regard, he explained -just as an example, because the perception does not apply to vegetables- that “if I sell tomatoes and they return tomatoes, there goes the perception, but if the tomato is used for a pizzeria, it does not apply” , as indicated in the amendment to article 8 of the general resolution, by clarifying that the measure reaches to those who “acquire and market -without any transformation-” food, drinks, personal hygiene and cleaning products.

The other change was raise the collection amount from $60 to $3,000which implies a sale of at least $100,000, “with which the storekeepers would be left out,” he asserted.

Castagneto attributed the reactions against the measure to the fact that “We are in an election year and any measure we take is going to look for that side.”

“When a political sector says that the Central Bank does not have to be there anymore and taxes do not have to be paid, it is a ignorance of the State, it is the disappearance of the State,” he added.

You have to know what the taxes are forwhat we collect, part goes to the national budget, part goes to PAMI, parts are co-participating funds and what are contributions and contributions go to social works and disability,” he specified.

For Castagneto, criticism of the measure implies “usufruct or lie in politics to win an electionbut then you have to govern”.

“We have already encountered many lies, but we tell the truth: in this case we do not raise taxes, we make a perception. Whoever has a better proposal, we have the doors open to listen,” he emphasized.

In defense of the measure, Castagneto maintained that “It is a way of looking for how we can increase the number of taxpayers if we have this type of evasion or avoidance” and tend to a “more fair and equitable” tax system.

In this sense, he trusted that, once the perception is underway, “the number of taxpayers will increase” and he equated the situation with “what happened with the meat issue, where today we have around 60,000 in the database butcher shops that were not registered”.

Source: Ambito

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