At the same time, in the tax on Profits an increase of 59.5% was observed. Improvements in the economy and employment offset the reduction in the number of people who stopped paying taxes as a result of the law promoted by the president of the Chamber of Deputies, Sergio Massa.
It is worth remembering that since the beginning of the year, the floor for the payment of Earnings was updated to $225,937, which implied a rise of 50.6% compared to the $150,000 set after the approval of the law in Congress.
Meanwhile, the collection for VATthe tax with the largest share of the total, showed an annual increase of 54.3%, lower than that of November and December due, on the one hand, to the high base of comparison of January 2021 due to exceptional income as a result of the plans of payment facilities and, on the other, to the extraordinary compensations made towards other taxes.
Where a strong decline was observed was in income from Export rightsalso known as “withholdings”, which barely rose 14.2% nominal (that is, much less than inflation), as a result of a drop in the price of commodities.
Nadin Argañaraz, director of the Argentine Institute of Fiscal Analysis (IARAF), maintained that “national collection started 2022 at a low speed”, with a real growth of 1%.
Even so, he clarified that, in comparison with recent years, the number of January 2022 exceeded that of the same month of 2019, 2020 and 2021.
In 2021, the National State collected more than $11 billion, which implied an improvement of almost 12% per year in real terms, compared to the previous year. Most of the resources obtained by the National State came from VAT, which had a real growth of 14.5%. Likewise, among the main taxes, the largest increase was observed in Export Duties, with a real jump of almost 70% versus 2020.
After announcing the arrival of an understanding with the International Monetary Fund (IMF), the Minister of Economy, Martín Guzmán, assured that the Government intends that the path of fiscal consolidation be driven by the impulse of economic activity and, therefore, , of the collection, and not by a cut of the cost.
“Increased collection is a tool to lower the deficit, but it cannot be the only one. Reducing the deficit to 2.5% of GDP is not achieved with collection alone, nor with combating tax evasion, which of course is necessary.” but it contributes to you in the margin. You also have to attack the fiscal front with some reduction in spending; particularly in the most ‘obvious’ point, which are energy subsidies,” the director of EPyCA, Martín Kalos, told this medium.
Source: Ambito
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