In August, the Two taxes that account for 54% of the revenue national recorded a drop of almost 20%, according to estimates by private consulting firms based on information provided by the Ministry of Economy.
This is, on the one hand, the collection of VAT, which is believed to have registered a fall of between 14.5% and 15% in August in real terms compared to the same period in 2023; and, on the other hand, the Tax on Earnings down 26% in real terms compared to the same period last year.
This is anticipated in two separate reports: Argentine Institute of Fiscal Analysis (IARAF) and the consultancy firm Politikon Chacobased on estimates of the funds sent by the Government to the provinces as federal co-participation.
According to both consulting firms, last month the Automatic shipments to the provinces by revenue sharing of taxes, special laws and compensations fell 18%.
The IARAF states that “This fall in August is mainly explained by the poor performance of the collection of Income Tax (-26.3% real year-on-year) and VAT collection (-15% real year-on-year) According to information provided by the National Directorate of Provincial Affairs.”
The entity that the economist directs Nadin Arganaraz He adds that “overall, the collection of VAT and Income Tax would have registered a real year-on-year fall of 19.5%.” On the other hand, it states that “in the cumulative total of the first 8 months of the year, the real year-on-year variation of the sum of these taxes would have been negative by 10.7%.”
“In relation to July, the combined collection of VAT and Income Tax would have increased by 3% in real terms. Income Tax collection would have fallen by 6.4%, in line with what has happened in recent years,” explains the IARAF report.
He adds that “VAT collection in August would have had a real increase of 1.3% compared to July, while in three of the four previous years the month of August had also had higher revenue collection than July.”
For its part, Politikon Chaco points out that the Tax on Profits registered a fall of 26.3%, while Value Added Tax fell by 14.6%.
“Real declines are also observed in the Internal Taxes (-2.1%) and Other Shared Taxes (-12.6%)”adds the consultancy firm headed by economist Alejandro Pegoraro. Meanwhile, according to its estimates, the resources from the tax on income also fell. Personal Property (-26.7%); of the Electric Energy Regime (-76.3%) and the Monotributo (-24.3%). On the contrary, they presented Increases in the Tax on Liquid Fuels (+43%).
July tax collection fell by 8% in real terms
According to the report AFIP, tax collection totaled $11.9 billion in Julya figure that explains a nominal growth of 233.5% compared to the same month last year and a fall of 8% real. The loss of resources was somewhat less than that observed in last June, which had been 14%. The agency will report the final figures for August on Monday.
Source: Ambito
