The fall of the Economic activity continues to negatively impact tax collectionas shown by the behavior of several taxes linked to the domestic market and consumption. According to private estimates, the amount produced by VAT and Income Tax fell in real terms by 16.7% in July compared to the same month in 2023.
The data anticipates that the July collection, that the Government will be announcing this Thursday, will once again show extremely depressed data.
According to the Argentine Institute of Fiscal Analysis (IARAF), There was a poor performance in the collection of the income tax Profits, down 24% year-on-year in real terms, and VAT, down 11.7%.
Together, the collection of both taxes “would have registered a real year-on-year fall of 16.7%”, says the study center headed by the economist Nadin Argañaraz. The specialist specifies that “In the cumulative total for the first 7 months of the year, the real year-on-year variation would have been negative by 9.4% for both taxes.”
For its part, the consulting firm Politikon Chaco estimated a 24% decrease in Income Tax and of the Value Added Tax of 11.7%.
Real declines are also observed in the Internal Taxes of 18.1% and Other Shared Taxes of 13%. In addition, the resources from the tax on Personal Property Tax of 90.4%; the Electric Energy Regime, 15.3% and the Monotributo, with 8.7%.
On the other hand, the Tax on Liquid fuels recorded an increase of 80% compared to last yeardue to the increase in taxes imposed by the Government in the first months of the year, as fuel consumption in Argentina is falling.
Collection: you expect a sharp drop in July
From these data it can be inferred that July tax collections will again register a sharp drop. Last month’s figure was 14% in real terms.
In addition to these types of taxes, Those related to employment, which are contributions to social security are being affected by the wage liquefaction effect of inflation, combined with a drop in registered employment, estimated at 200,000 jobs in the first six months.
Also Export taxes are being affected by the fall in international prices. This week, for example, soybeans reached US$380 per ton, which is compounded by a drop in other Argentine production.The effect of the increase in production this year is due more than anything to quantitiessince last year, due to the drought, half of what was produced this year was exported.
The Tax that remains in the lead The COUNTRY Tax is the savior of the situation, which the government promises to lower in September to 7.5% from 17.5%. By that time, the restoration of Fourth Category Income Tax, the moratorium and the money laundering will already be in effect. The accumulated collection of this tax explains by itself the fiscal surplus of this year.
Source: Ambito
