It is, for example, the postponement of some rate adjustments which should have occurred last month and which, as the Economy Minister, Luis Caputo, allow him to “give the middle class a break.”
It is also highlighted that, during that period, the Government reduced the intensity of the cut in social security.
Taxes: increase in May income
As pointed out by the Argentine Institute of Fiscal Analysis (IARAF), the increase in tax revenues in May, which was $13.4 billion with a real increase of 10%, “significantly reduced the loss of resources that the National Public Sector non-financial accumulated to the first quarter of the year.”
“From losing $2 billion at the end of April, it went on to lose $1.6 billion at the end of May“says the entity headed by the economist Nadín Argañaráz.
The report maintains that “in May there was a strong increase in real collection, which translated into a surplus of $435 billion in constant currency as of May 2024 for the national non-financial public sector”.
“This surplus would reduce loss of tax revenue that the national government accumulated in the first four months of the year, where had $2 billion less. Now, in the accumulated of the year it would lose $1,588,000 million”the report states.
In this way, the IARAF indicates that “this relative cut in income changes the dynamics of the first 4 months, in which public spending contributed to cutting the deficit.”
“In May, The real increase in income surely financed a lower intensity in the reduction of primary spendingwhich genuinely occurred in social security benefits,” he points out.
How much was raised in May
Thus, tax collection recorded in May the best result of 2024, totaling almost $13.4 billionwhich marked an increase of 320% compared to the same period last year, as reported by the Federal Administration of Public Revenues (AFIP). This is a real increase of 10%.
The substantial improvement was due to extraordinary result of Income Tax, which had a nominal increase of 585%, as a result of the liquidation of the companies’ annual balance.
It is a result unusual derived from the December devaluation, which generated an unusual return on capital for companies that had dollarized assets. Just as I had indicated Ambit, The increase in Profits will allow the Minister of Economy, Luis Caputo, to ensure one more month with financial fiscal surplus.
If you look at the collection Profits of $5.5 billion would be the best May in the last 27 years. The second best record was in 2004. This collection would imply a surplus of $2,448,000 million in constant currency in May 2024 compared to the same month last year.
On the other hand, there was also a strong improvement produced by the COUNTRY Taxwhich last month left the treasury with $563.1 billion, with an increase of $1,239.3% compared to the same period last year.
Source: Ambito
