The collection of the General Tax Directorate (DGI) fell 0.6% year-on-year in April in real terms (discounted inflation) as published today by the agency. Taking the accumulated first four months of the year -a more representative figure, because it avoids the particularities of each month- the collection shows a 1% decline Compared to the same period of the previous year.
The figure is illustrative that the Uruguayan economy has had growth difficulties in recent months. In fact, the GDP posted two consecutive quarterly declines in the second half of last year (technical recession). Even so, the drop in April is more moderate than that registered in February and March (2 and 3% respectively).
In the first four-month period, the drop was mainly due to the decline in the VAT collectionthat fell 2.7% yoy VAT is the main tax and accounts for 45% of the total collection.
On the contrary, there were increases in the collection of income taxes. In the case of Personal Income Tax (IRPF) the increase was 2%. In the case of business income tax (IRAE) the advance was of 1.3%
Regarding personal income tax, the increase may be reflecting the improvement in real wages in recent months, after a period of decline. In the case of business income, the years prior to this year were good in various sectors, for example in agriculture. The collection of this tax reflects the situation of companies with a certain lag and not so much the current situation.
In this sense, a particularly illustrative piece of information is the sharp drop in the IMEBA collectiona sales tax of agricultural products which is taken as an advance of the IRAE in the largest companies in the sector. The collection of this tax fell 37% in the first quarter, reflecting the impact of the drought and the drop in prices in some markets.
He personal income tax and the IRAE They answer for about a 15% of the total collection each. If other income taxes are added (non-residents, IASS for retirees) this category is responsible for 38% of the total collection.
Another data that is carefully looked at in the monthly reports of the DGI is the collection of Property Transfer Tax (ITP)not so much because of its importance in collection -which is limited- but as an indicator of activity in the real estate market.
In April this tax had a year-on-year drop of almost 9%and in the four-month period its collection is practically the same in real terms as in the first four-month period of 2022. Here, too, a stabilization in the dynamics of the real estate market can be glimpsed, although it will be necessary to see how the coming months continue.
With the data for April, the collection of the DGI continues to show an increase when considering the rolling year, although with a declining rate.
Source: Ambito
