The Minister of Economy, Luis Caputo will have to cover a monthly drop of about $300 billion in tax revenue when in September it lowers the country tax from 17.5% to 7.5%, as it has been promising the market in recent weeks. But to ensure the fiscal anchor, it has already planned a “cushion” in August.
That amount is approximately what land has added to the collection when this year it decided to raise the rate to the current level. It should be noted that the tax expires on December 31 and the government has informed Congress in its progress report on the 2025 Budget that it will not ask to renew it.
In July of last year the PAIS tax had a rate of 7.5% and had not been generalized to all dollar sales operations. At that time it collected At current values, about $235 billionThen, Javier Milei’s government generalized it to all imports and raised the tax rate.
According to data from the The Federal Public Revenue Administration (AFIP) in the seventh month of this year managed to collect some $698 billion, noting that in 2024 the Central Bank has sold more dollars than in the same month last year due to the fact that import regulations have been relaxed.
According to economist HArnán Letcher, director of the Argentine Center for Political Economy (CEPA), assuming that the PAIS Tax had remained at 7.5% “There would have been a deficit in the first four months of the year.”
It should also be noted that during this year the issue of BOPREAL bonds, which are given to importers, was also taxed, and therefore served to increase their collection capacity.
Between January and July, AFIP data show that the tax contributed $4.29 billiona figure that explains by itself the primary surplus obtained during that period. Last month the tax grew in nominal terms by 965%.
The income tax to replace
The tax intended to replace the potential collector is the one restored Fourth category income tax. It has to leave the national government at least $300,000 million every month after having paid the federal tax sharing and it is likely that you will get it.
The lien, restored as Income Tax, began to contribute to the treasury from July 1st and he’s going to leave deducting from the salaries that are paid in the first days of AugustIt should be remembered that last year Congress repealed the tax that affects the highest salaries, with the support of then-deputy Javier Milei.
What was left of Profits, the The component of self-employed workers, companies and the so-called Cedular, left $1.9 billion last month in July
This year, as the president needs the resources, he proposed to reinstate it despite the various discursive pirouettes elaborated in order to avoid assuming the political cost. For his accounts to be correct, he would have to add up to around $700 billion. In addition, it should be noted that the moratorium and the special tax on money laundering will have an impact in 2024 and part of 2025.
As the first income from the restored tax It will be noticeable in the August collection and if the government keeps its promise reduce the COUNTRY TAX by 10 points only in September, It is likely that this month the AFIP’s income reflect this extraordinary increase that will act as a “cushion of pesos.” It will be from that only month in which the new income tax coexisted with the 17.5% PAIS tax.
Source: Ambito
