The advisor to the national government, Federico Sturzeneggercame out this Saturday to respond to the concepts of the former head of the General Directorate of Customs, William Micheland denied that the restitution of Income Tax for the fourth category and the increase in withholdings is a “tax”but it is ato “tax substitution” which will result in a lower inflation.
“There is a very big fallacy, a lie in what Michel said, because The expense is financed by the Central Bankand if there is an expense, it is paid either with taxes or with inflation. Inflation is a taxbut the cruelest of all because it is paid by those who have the least,” he stated Sturzenegger this morning in dialogue with Radio Miter.
For the advisor, who collaborated in the writing of the DNU 70/2023what there is, in reality, is a “tax substitution”.
“We are going to collect these formal taxes to stop collecting the inflation tax. The inflationary tax is replaced by more genuine ones that are better distributed throughout society as a whole. These are fallacies that have allowed Kirchnerism to leave these levels of inflation and poverty,” he added. Sturzeneggerformer government official Fernando de la Rua and Mauricio Macri.
Michelle had indicated that, among the measures taken by the Minister of Economy, Luis Caputoand the bill that will be sent to Congress in extraordinary sessions, there is a “substantial increase in tax pressure”. “If we want to give it the adjective ‘tax’, it is a name that can be given to it,” she said on the same radio station.
Guillermo-Michel
Customs
The former head of Customs pointed out that with the increase in export taxes there will be a additional collection of 0.9 points of the Gross Domestic Product (GDP)equivalent to US$5.2 billion on a projection of exports of US$90,000 million for the next period.
He mentioned as an example that the corn will pay 12% to 15%the automobiles of 4.5% to 15% and the peanut of 0% to 15%.
In particular, he considered as something “incorrect” the equalization of soybean withholdings to oil and flour in 33%to the “remove the possibility of industrialization” to the sector.
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On the other hand, he stated that the restitution of Income Tax to workers and retireeswhose fourth category was eliminated in a reform approved by the Congress last October – “will involve a increase of 0.45 GDP points in fiscal pressure”.
“There are 900,000 workers who stopped paying who would pay it again with an average of $300,000 net pocket salary that they would lose,” he said.
All these measures, together with the lack of extension of the program Buy without VAT that “returns an average of almost $18,800 per month per person” impact “2.36 points of GDP”according to Michelle.
“Here an adjustment was chosen in three ways: one major devaluation which involves a liquefaction of expense, one reduction in real spending as in public works and transfers to provinces and a increase in tax pressure“said the former official.
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For Michelle“there were other options” to cover the deficit such as “the swap to China that allows us to bring relief until the dollars from the harvest arrive in April.” Taken as a whole, the measures taken indicated- “affects the purchasing power of workers and retirees”and “takes away competitiveness to regional economies such as peanuts, milk and wine.
On the other hand, he questioned whether, among the projects included in extraordinary measures, “tax benefits to multinational companies like the japanese and those located in Luxembourg“. “That implies that More Income Tax will be charged to an SME from Berazategui than to a multinational based in Luxembourg. “This is inconsistent,” she said.
Michelle did not deny that he had had conversations to continue in charge of the Customs during the current administration, but pointed out that there are “differences” with the position of the current Government such as those it proposed on tax matters.
Source: Ambito
