Tax collection grew 104.9% in May, below inflation

Tax collection grew 104.9% in May, below inflation

Taxes linked to the domestic market continued to pull well, but those related to foreign trade fell sharply, both as a result of the drought and the stocks.

The recaudation May taxes amounted to almost $3.18 trillion, which marked a nominal increase of 104.9%, with a real fall of 5.3% taking into account the effect of inflation, as reported by the Federal Administration of Public Revenues (AFIP). In that way, In the first five months of the year, revenue from the Treasury amounted to $12.45 trillion, with a nominal increase of 92.5%. As some analysts had anticipated, May tends to have better collection performance than April.

The head of the AFIP, Carlos Castagneto, highlighted that the taxes linked to internal activity behaved above average. “The income obtained through VAT (144%), tax on Credits and Debits in Current Accounts (139%) and Social Security (117%) grew above the total monthly collection and the interannual variation of prices, compared to May 2022,” said the head of the organization. In this sense, he added that “the three taxes are linked to economic activity” and that “they serve as an approximation of an internal market that remains at relatively high levels.”

According to official data, the Value Added Tax (VAT) registered revenues of $1 trillion with a nominal increase of 144.4%. That of tax origin grew 148.7%, while customs 139.6%.

As for the Income Tax, last month $803,737 million were collected with a nominal improvement of 84.9%. Among the most important elements that affected the numbers, according to AFIP, in May “the expiration of the presentation and payment of the affidavit for the fiscal period 2022 for companies with a December year-end, the most important of the year, operated.”

On the other hand, Social Security obtained resources for $659,854 million, with an improvement of 117.8%. Of these, personal contributions left $252,366 million (108.5%) and employer contributions $400,480 million (123.7%).

On the side of the withholdings on exports there were hardly any resources for $177,420 million with a nominal increase of 36.5% compared to the same period in 2022, but which actually explains a collapse of 36.9% taking into account the effect of inflation.

Meanwhile, import tariffs and the statistical tax collected $93,251 million with a nominal increase of 106.5% and a real decrease of 4.5%.

In this regard, the head of the Argentine Institute of Fiscal Analysis (IARAF), Nadín Argañaraz, stated that the accumulated tax collection for the year “would have had a real decrease of 6.9%”.

In May, he pointed out, “the taxes that increased the most were Personal goods (30.9%), VAT (13.1%) and check tax (10.9%). Those that fell the most were Fuels (42.6%), export duties (36.9%) and PAIS tax (17.9%). Without taking export duties into account, the real interannual variation of the total collection would be a decrease of 2.4%. The agricultural dollar made its contribution of dollars, but its impact on collection was not able to reverse the real drop in collection during May.

Source: Ambito

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