The owner of the General Directorate of Customs (DGA), William Michelassured that the growth in collection will exceed the 148% annually and will offset the expense of the latest measures announced by the Minister of Economy, Sergio Massawhile ruling out a scenario of hyperinflation.
Asked about the financing of measures such as the elimination of Income Tax for the majority of workers or the reinstatement of Value Added Tax (VAT), Michelle He pointed out that as of September 28 “The collection will exceed $4.1 billion”.
“Taking out foreign trade that is not comparable because the soybean dollar had a historical record of settlement in September of last year of US$8,163, taxes are going to grow above 148% year-on-year with a growth of VAT over 180%in debits and credits of 128% and in the 125% social security“, accurate Michelle this morning in dialogue with Radio Miter. Added to this, he indicated, are the income derived “from COUNTRY tax to the import payment from abroad that gives additional revenue.”
In the same way as the refund implemented since 2001 and until December 2016, which refunded 5% through payment with debit cardspointed out that the program Buy without VAT points to the “expansion of the tax base due to greater laundering of the economy”. As of yesterday –she added- “13,794,591 people accessed the benefit for $21,300 million”.
On the other hand, Michelle ruled out the possibility of hyperinflation. “There are opinions from economists who have worked with opposition candidates who are very serious like Martín Redrado who have flatly ruled out the hyperinflation scenario and so have I. I discard it“said the official.
According to Michellethe key to lowering inflation is to strengthen “a reserve accumulation process that allows us defend the value of our currency”. “He most stable inflation process that Argentina hadremoving the fictitious economic reality that convertibility generated, was between 2003 and 2008 because there was fiscal surplus”he recalled.
Likewise, he also ruled out that there is a “import stocks”. “It is being imported in a volume that is important to historical levels. Clearly there are a series of companies that prefer to work with a larger stock of merchandise to continue with the processes and, therefore, drought and the lack of dollars“We do not have the dollars available for that level of stock,” he indicated.
In this context, he criticized the lack “of a professional job” by the former minister of Economy, Martin Guzmanregarding the currency control. “We as Government we have to take charge because Dollars that are missing for a nut or a spare part for an SME are also missing because for two years during the Ministry of Economy The necessary controls were not applied to avoid the import festival that occurred with over-invoicing maneuvers for latex gloves, machinery and airplanes; and precautionary measures for US$3,000 million,” said the head of the Customs.
Mass consumption price agreements
Lastly, he referred to the mass consumption price agreements. “There are products where it is easier to reach a reasonable scheme such as medicines and prepaid where there are few suppliers or fuel, while in other sectors such as massive consume is more difficult. Knowing that, instead of just going over the offer, We went about the demand by returning the VAT of the basic basket directly to the consumer“, he concluded Michelle.