Measure “Buy without VAT” was presented by Massa in the Ministry of Economy and aims to alleviate the burden of this tax on the food basket, to “consolidate a more progressive tax system.”
What are the keys to “Buy without VAT”
- The benefit reaches 9 million workers who earn salaries of up to $708,000
- Up to 21% of the amount of the purchase operations will be returned, but with a limit equivalent to 21% of the value of the Basic Food Basket for 4 members.
- The amount of compensation when purchasing with a debit card is $18,800 pesos per month
- The benefit applies to purchases of food, meat, fruits, vegetables, dairy products, personal hygiene products, etc.
- There will be no need to do any paperwork, The benefit is automatic.
- It maintains those already benefited: Universal Child Allowance (2.5 million) and retirees and pensioners (7 million).
- It accumulates with other bank or business promotions.
- The measures will come into effect from Monday, until December 31.
- The Government will send a bill to extend the benefit to 2024.
- If the project is approved, the remuneration amount, which is $18,000, would increase to $23,000
Who adds to the benefit
- Monotributistas of all categories (only the pure ones, that is, those who have no other income): 2.7 million.
- Employees in a dependency relationship with income of up to 6 SMVM (today at $118,000): 9 million. (they are those who were not benefited by the increase in the non-taxable minimum in income tax)
- Workers of the Private Home Personnel Regime: 440 thousand.
“We are not going to wait for the new law”
From the Treasury Palace, they assured that “they are not going to wait for the new law.”
“We are going to implement, with the delegated powers that the Government currently has, the expansion of benefits starting this month with the current limit of $18,000 to monotributistas and employees in a dependency relationship and in a private home,” they completed.
Likewise, they clarified that a refund regime currently applies, but that it is limited: “It is a 15% refund on purchases made with a debit card.”
“This reimbursement scheme has a limit of $4,056 per beneficiary, which was recently increased to $18,800 only for retirees and pensioners,” said Economía.
When announcing the measures, Sergio Massa He urged all businesses in the country to promote the system and asked them “to use formal sales so as not to steal the benefit of the VAT refund from the people. And to workers, monotributistas, beneficiaries of the Universal Allowance, retirees and pensioners who use their debit card because this gives them back purchasing power without having to do any paperwork.”
“The most important thing,” he pointed out, “is that we continue working to recover the income of Argentines, which is the best way to make our internal market strong and continue providing work to our businesses and our SMEs.”
The head of the Treasury Palace explained that this program called “Buy without VAT” was part of a set of measures aimed at mitigating the effects of the 20% devaluation imposed by the International Monetary Fund.
In this sense, Massa explained that “15 days ago we took a series of measures that aimed to compensate and alleviate the damage that this type of price change situations somehow generated in the pockets of Argentinians.”
Source: Ambito
