The regular performance that the Export Increase Program (PIE) showed throughout April, the effect of the drought and the fall in imports as a result of the restrictions on access to foreign currency, had a negative impact on the tax collection of the last month, which concluded with income of $2.5 trillion and a nominal growth of 90%, according to the Ministry of Economy.
The data reflects the negative impact on total tax resources in the fourth month of 2023. If compared against estimated accumulated inflation for the 12-month period, collection fell 7.8% in real terms, according to IARAF.
In this regard, the head of the Federal Administration of Public Revenues (AFIP), Carlos Castagneto, reflected his disgust with the countryside through social networks: “Export rights had a negative result of 48% as a result of the impact of the drought and the lack of liquidation of the agro-industrial sector, despite the benefits that have been granted to them”, he stated.
In the accumulated first four-month period, the AFIP was able to collect taxes for $9.2 trillion, which marked an increase slightly above the nominal 88%, also behind inflation. On the other hand, as forecast by private consultants, taxes related to internal activity performed well.
On the foreign trade tax side, withholdings registered a drop of almost 50% nominal, totaling just $50,561 million. According to private estimates, cereal companies declared some US$2.5 billion of exports in April, almost half that of last year. Tariffs on imports and the statistical tax reported $72.850 million, 61% nominal better than in April 2022.
The best performance was that of VAT, which had an increase of 117.3%, above inflation. The tax contributed $921,091 million to the coffers. The DGI VAT, linked to internal activity, had an increase of 130%, which indicates that there was an acceleration of consumption in March since the tax shows the evolution of the billing of the previous month.
The Income Tax, which is the other pillar of tax revenue, had income of $499,467 million with an increase of 88%, below the inflation of the last 12 months.
Regarding social security, employer contributions collected $375,494 million, with an improvement of 116% above inflation, which reflects the higher wage bill, although personal contributions showed a rise somewhat less than the evolution of prices. They totaled $232,840 million with an increase of 104.7%.
In the case of the Personal Assets Tax, entries for $59,949 million were registered, with an increase of 69.3%. The increase in the rate for receipts for the purchase of foreign currency, which went from 35% to 45%, and the implementation of an additional rate of 25% applied to trips and expenses abroad, had an impact in favor.