During Sergio Massa’s administration, the minimum monthly income from which the fourth category of Profits is paid had been raised. However, the governors do not agree and the political negotiation continues.
The Government will advance with the governors for the co-participating tax.
The DNU and the Omnibus Law which include a host of economic reforms, It did not incorporate the reversal of the Income Tax. What is the reason?
Last September, during the administration of Sergio Massa, the minimum monthly income from which the fourth category of Profits is paid had been raised, which exempted more than 800,000 taxpayers.
The fiscal cost of the measure is $2.9 billion and of that total, $1.7 billion This is what corresponds to the provinces, according to the governors’ calculations.
The rnorm eversionwhose modification had had the affirmative vote of Milei himself when he was a deputy, is in line with the Government’s premise of reaching fiscal balance in 2024: eliminating the modifications would contribute to the National Treasury 0.4% of GDP according to calculations published by the Treasury Palace. However, the main drawback is linked more to politics than economics.
p3-omnibus project_opt.jpeg
The discussion with the governors
Some governors They tried to mark the field on this tax that is co-participable. Although they emphasize that they do not expect that the measure will not be reversed, they did warn about the fall of the co-shareable mass. Thus, they presented a bill that proposes the sharing of 70% of the proceeds from transactions carried out through the Check Tax as “compensation”.
But this initiative is not considered a possibility for the president, who assured in statements to Radio Rivadavia: “It is clear that we are not going to share the tax on the check. It is clear that the provinces today have a deficit of 1 point of GDP. We are not going to modify our zero deficit policy, It is immovable. [Volver a introducir Ganancias] “It is the solution that allows the provinces to channel their accounts.”
In this sense, it is expected to continue in the talks with the governors and progress will be made in sending the modification of the Income Tax individually.
Source: Ambito
