The National effective tax pressure in 2024 rose half a percentage point compared to 2023. The data arises from a recent study that highlighted that last year, taxes for the equivalent of some US$131 billion, a figure that is equivalent to 23% of GDP.
The report from the Argentine Institute of Fiscal Analysis (IARAF) showed that income from money laundering, moratorium and Personal Assets meant that collection did not fall in 2024 compared to 2023.
It is necessary to take into account that The effective tax pressure is measured as a relationship between tax collection and Gross Domestic Product (GDP), so that it varies depending on the treasury’s income and growth or lower economic activity.
For example, the IARAF clarifies that in The annual collection of 2024 “implicitly includes the impact of extraordinary resources, a product of the Bases law.”
“These incomes include the proceeds from Money Laundering, Moratorium and the advance of Personal Assets. It is necessary to clarify that the amount collected as 5 years advance is an income that will no longer be ahead,” the private report states.
According to the consultant, by excluding These incomes, the effective tax pressure in 2024 would be equivalent to 22.5% of GDPthat is, it would maintain the same level compared to the year 2023.”
Based on this, the study indicates that “the taxes with the greatest increase in effective pressure would be the PAIS tax, with a growth of 0.3 point of GDP, export duties, 0.25 point, Fuels with an increase of 0.17 point and Social Security, 0.15 point.”
“The taxes Credits and debits in current accounts, co-participating internal and import duties show practically no variations. At the other extreme are VAT and Personal Assets, as those taxes that had the greatest decrease in relative importance to GDP,” the study explains.
In relation to The provinces, data from the Undersecretary of Public Revenue of the Nation indicate that in 2022 and 2023 they registered a tax pressure of 5.1% of GDPto which another 3 points would be added corresponding to municipal rates at the national level. With this, it could be estimated that the national tax pressure It would be between 31 and 32% in the national consolidated.
In 2024, revenue and GDP fell
According to IARAF data, in real terms The 2024 collection fell 5.5% despite having received the extraordinary contribution from the fiscal package. The consulting firm run by the economist Nadin Argañaraz clarifies that without it there would be down 7.5%. What explains The rise in fiscal pressure is the fall in GDP which would be 3% compared to last year.
The Government wants to reduce taxes
In 2025. the Government would be presenting a tax reform that will seek to simplify the system, by reducing the number of national taxes, which are about 46, to only 5 or 6 taxes, which currently explain 80% of the State’s income.
Among the taxes that would remain in force are the Income Tax, for companies and for individuals, social security contributions, the Value Added Tax (VAT), import tariffs and withholdings.
Source: Ambito
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