According to a private analysis, monthly tax revenues would fall between $170 billion and $250 billion per month. Will the annual surplus be maintained?
The Government would yield between $730 billion and $1 trillion until the end of the year as a result of the reduction of COUNTRY TAXaccording to economist Nadin Argañaraz.
“I would have a cost between 0.13% and 0.18% of GDP, which is equivalent to between $730 billion and $1 trillion,” Argañaraz said when consulted by this agency. This implies that Monthly tax revenue would fall between $170 billion and $250 billion per month.
PAIS tax: Luis Caputo’s announcement
The Minister of Economy Luis Caputo announced the reduction of the PAIS Tax rate from 17.5% to 7.5% starting next Monday for the imports of goods and freight. In this way, other segments are reached, such as the savings dollar, the tourist dollar, payments for streaming platforms, services contracted abroad, the purchase of bonds and the purchase of dollars for the transfer of profits, among others.
Shortly after taking office The current administration raised the PAIS tax from 7.5% to 17.5% under the promise of reducing it when fiscal balance is achieved.
Now Caputo announced his reduction and the president Javier Milei announced that he would be eliminated in January 2025which is already contemplated in the national budget project for next year. In the first seven months of the year the PAIS Tax has raised $4.2 billionwhile in July alone it totaled $698 billion.
taxes afip moratorium money laundering
freepik.es
How the reduction of the PAIS tax will be compensated
This reduction in income will have to be compensated by cutting other budget items. maintain the balance of public accounts.
According to a study by the Argentine Institute for Fiscal Analysis (IARAF) headed by Argañaraz, “the fiscal adjustment in the first 7 months of the year was equivalent, in annual terms, to 5.3 percentage points of GDP, that is, 0.9 percentage points above the 4.4 points needed to eliminate the fiscal deficit.” This would give the Government room to implement this reduction and maintain its budget without a deficit.
Source: Ambito
