As anticipated, The Minister of Economy, Luis Caputoconfirmed that On Monday, September 2, the Government will lower the PAIS tax from 17.5% to 7.5% predicted this Wednesday that it expects a decrease in inflation due to the drop in the COUNTRY TAX“I think that it will involve a reduction in prices in September,” he said. He also said that he met with many cameras to convey this to them.
“Yes, on Monday the rate that we had raised at the time from 7.5% to 17.5% will go down. We raised it at the time and I said it was going to be temporary, that it was going to be to gain negotiating power in a situation in which we wanted to pass the Bases law and so on,” he said in radio statements. And he confessed that the increase that was applied was due to the fact that they were “in inferior conditions and we had to demonstrate in some way that we could achieve fiscal balance alone and at that time that was the only possibility.”
Caputo emphasized that it is key that this price reduction occurs with the reduction of the tax “because if people see that we remove the PAIS tax and they receive nothing, what good is it?”, the minister said. And he trusted that the businessmen understand this. “The important thing is that they understand that, between all of us, a new model has to be built. It is useless to speculate because it is bread for today, hunger for tomorrow. Everyone’s reaction has been very good so I have expectations,” he said.
Inflation: Caputo’s expectations for August
However, this impact is expected to be seen only from next month onwards, but in about fifteen days, the Institute of Statistics and Census (INDEC) will release the price evolution data for August and regarding what level it may be located at, Caputo anticipated: “I suppose it will be close to the level of July, hopefully a little lower but it will be around that level.”
And, in line with his expectations, he said that “in September it will go down due to the PAIS Tax because we are taking more measures that will contribute to reducing the Argentine cost.” Thus, he anticipated that “in September it will be a month in which we should see a decrease” and predicted that “as long as we maintain the macro order, this decrease will continue.”
News in development.-
Source: Ambito
