Argentina approves income tax exemption for 93% workers

Argentina approves income tax exemption for 93% workers


Twitter / SenadoArgentina / Collection

Originally published in Current brazil network

About 93% of workers will not have to pay income tax in Argentina as the Senate approves an increase in the line of exemption to 150 thousand pesos (about R $ 9 thousand) per month. The measure would benefit less than 1.2 million salaried and retired workers. Virtually all senators – 66 votes in favor and only one abstraction – accepted the proposal. It was approved with a large majority by the Chamber of Deputies with only three restraints.

According to the newspaper, the decision Page 12, Is part of a plan to create a new financial aid. Emergency family income (IFE, in its abbreviation in Spanish), reacts to the economic difficulties imposed by the Kovid-19 epidemic. One of the consequences of the health crisis, which has exacerbated the economic crisis inherited from Mauricio Macri’s government by current President Alberto Fernandez, is that poverty affects about 42% of Argentina. To give you an idea, a wage earner with a gross monthly income of 120 thousand pesos (R $ 7.3 thousand) paid 3.200 thousand taxes (R $ 195) per month. Now he is missing out. The new law is retroactive to January 1 and the government will reimburse what has already been charged in April. The fiscal impact should be between 34 and 47 billion pesos, about R $ 2 billion and R $ 2.9 billion.

Route improvement

Another feature of the approved measure is that it complements the reversal of the tax argument, which began in December with the creation of an extraordinary tax on large fortunes, which was approved. In addition, with the aim of reducing the economic impacts exacerbated by the epidemic, the Alberto Fernandez government was able to approve a project that was expecting about 308 billion pesos, or about $ 4.5 billion, on a mere 0.02% of the population. Used to impose taxes.

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Now, the central goal is to start recovering the purchasing power of wages to heat the economy as well. “When we left the government in 2015, there were 1.1 million employees who contributed to revenue. Macri (Mauricio Macri, ex-president) campaigned saying that (workers) were not going to pay the tax and the number doubled, bringing it to 2.3 million. With this law, we want to fix the harsh hit Macri gave to the workers’ pockets Page 12 Jose Mance. A support block for President Alberto Fernandez, chaired by Senator Frante de Todos.

In addition to the increase in the income tax exemption line in Argentina, the law remains intact until the September exemption for health workers on duty and overtime. Daycare expenses for children up to three years can be reduced to an annual ceiling of 67 thousand pesos (about R $ 4 thousand). The deduction for children with disabilities will be doubled – today it is 78,833 pesos (about $ 4820) per year – and the age limit has been lifted. Deductions are also allowed for the purchase of school supplies or for a partner.

Muhammad Wayne

About the author: Muhammad Wayne

Wayne is a reporter who covers everything from oil trading to China's biggest conglomerates and technology companies. Originally from Chicago, he is a graduate of New York University's business and economic reporting program.

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