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Luis Caputo celebrated the approval of the Bases law and fiscal package in Deputies

Luis Caputo celebrated the approval of the Bases law and fiscal package in Deputies
Luis Caputo celebrated the approval of the Bases law and fiscal package in Deputies

The Minister of Economy Luis Caputo celebrated the approval of the Bases law and the fiscal package, which includes the restitution of the Income and Personal Assets tax. “Congratulations to our leaders who worked so hard these 6 months to be able to reach an agreement,” he wrote in his X account and in turn, extended his gratitude to the politicians “who care about the people.”

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And the Chamber of Deputies turned the project promoted by the Government into law after more than six months of debate in Congress. The ruling party achieved the reinstatement of the Income Tax, as well as the changes in Personal Assets. A positive signal for the market. However, X users immediately urged the head of the Treasury Palace to lower the PAIS tax, as he had promised. Now he will have to define it.

PAIS tax: Caputo’s promise

Now Caputo faces his promise to reduce said tax after the final sanction of the Bases Law and the fiscal package. Well, the market does not forget and awaits the announcement to gauge the impact on the fiscal balance that the Government intends.

It should be remembered that Caputo put pressure with the announcement that he would reduce the rate of this tax from 17.5 to 7.5% when both norms were firm. Now they are law.

In making his promise, Caputo was strategic in not providing too many details, leaving open multiple possibilities for how the measure would be implemented. The Country tax is applied in a wide variety of situations: purchase of foreign currency for savings, payment of tourist services, subscription of bonds or securities issued by the BCRA, and transfers of dividends, among others.

It is therefore crucial to determine on which transactions the tax rate will be reduced. It is important to remember that It was Caputo who decided to increase this tax from 7.5% to 17.5% when he launched his first economic measures in December, so now we would only return to the scenario that existed six months ago.

Luis Caputo at IAEF 2.jpg

@IAEF_official

Analysts’ doubts revolve around the impact on revenue, since this tax has become one of the pillars of fiscal income.

One of the direct effects would be the reduction in the cost of imported inputs, which would have two consequences: benefits for some companies by reducing their production costs and losses for those that would have to compete with imported products at a lower price.

Analysts are waiting to learn what the tax structure will look like and how Caputo plans to raise the funds needed to offset the promised reduction. In the first five months of the year, this tax contributed $2.8 billion to the treasury, out of a total of $44.7 billion, which represents 6%. This volume, given the economic situation and the slow recovery, does not seem easy to balance.

Source: Ambito

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