“As of last Friday, nearly $7.7 billion had been returned to 3.3 million people. When we finish processing what happened over the weekend, we will see that it was a record”Michel said in radio statements.
Regarding the measure Buy without VATsaid that removing the tax “is not efficient from a technical tax point of view because it attacks supply,” but stressed that the measure promoted by the Minister of Economy, Sergio Massa, “goes directly to demand.”
“Return the VAT to the people to make a less regressive system and so that they have greater purchasing power to consume,” said Michel.who noted: “We want to turn it into law because it is a positive, virtuous public policy that serves the people.”
By way of comparison, he noted that “Other candidates propose that taxes must be lowered for people with high purchasing power who have accounts abroad or export duties must be lowered for cereal companies.”
In this context, he maintained that “the measure of (eliminating the fourth category of) Profits, VAT refund, tax relief for SMEs, monotributistas and self-employed workers and another series of measures that we are going to continue taking have to do with put more money in people’s pockets to improve purchasing power“.
“We are putting a political discussion on the table which is that salary is not profit and (former president Mauricio) Macri received the government with 1 million workers paying the tax, they promised to eliminate it and when 2.5 million workers left they paid it “Michel added.
He stressed that “people are appreciating Massa who raises issues and does them, and the things he defines are implemented in 48 hours.”
Bill Buy without VAT
At the same time that the VAT refund is implemented until December 31 of this year, the Government sent a bill to Congress last week to make the VAT refund permanent for products in the basic basket for sectors with lower incomes. The project will begin to be debated in committee this Thursday at 11.
The initiative seeks to give continuity through legislative support to the economic measures announced last week by the minister and presidential candidate that began to be formally implemented on Monday, September 18, with the refund of VAT for lower-income sectors.
The text specifies that, if approved by Parliament, will come into force from January 1, 2024and empowers the enforcement authority to expand the beneficiaries reached by the legislation.
In article 1 it establishes that The beneficiaries of the VAT refund will be those who receive retirements, death pensions and non-contributory pensions, in a monthly amount that does not exceed the sum of six guaranteed minimum salaries, the beneficiaries of universal child allowances for social protection and pregnancy allowances for social protection.
Likewise, workers who provide paid services in a dependency relationship in private or public activity will be reached by this benefit, provided that the monthly income does not exceed the sum equivalent to six times the Minimum, Vital and Mobile Wage, those included within the Special Regime. of Employment Contract for the Personnel of Private Houses and contributors to the Simplified Regime for Small Taxpayers (RS) who are included and framed in Law 24,977.
The project also clarifies that “the benefits of this Program include the purchases of goods indicated in this article within the framework of the “Alimentar Card” or the cards issued to beneficiaries of the National Socio-Productive Inclusion Program and Local Development “Empower Work”.