Tax collection grew again above inflation in July

The Ministry of Economy reported that july’s tax collection amounted to $1.74 trillion, which represented a nominal increase of 87%. In real terms, discounting the effect of inflation, the increase is in the order of 17%. Thus, the income of the Treasury registered positive data in real terms for 23 months in a row. As reported by Economía, last month the Income Tax registered an increase of 118% to $ 396,759 million. Thus, this tax registered a real increase of 48%. On the other hand, the Value Added Tax (VAT) had revenues of $490,806 million, with an increase of 82.1% nominal and 12 points more than the accumulated inflation. 
“In this way, the succession of months with positive guarismos of this tax adds up to nineteen cases, with the exception of October 2021,” highlights a report by the Center for Argentine Political Economy (CEPA). The Treasury explained that july tax collection was mainly driven by the performance of VAT, Income Tax, taxes associated with Social Security and Personal Property Tax. In the case of Social Security, Personal Contributions registered inflows of $175,042 million, with a nominal increase of 78.6% and 8.6% in real terms. On the other hand, employer contributions had revenues of $254,108 million, with an increase of 81% nominal and 11% real.

On the other hand, taxes linked to foreign trade began to show the seasonal effect. The withholdings on exports had a nominal growth of 44.2%, which implied a decrease in the real of 25.8%, with a production of $110,414 million. On the other hand, the tariffs and statistical rate that tax imports generated about $54.33 billion, with a real increase of 7.3%. Meanwhile, the Personal Property Tax registered a strong increase of 300% nominal, to $ 31,774 million, while the PAIS Tax, linked to the purchase of dollars for hoarding grew 318.5% nominal to $ 41,795 million. In this context, Economía indicated that “the taxes that give progressivity to the system registered, as a whole, an increase of 126.4%”. “This increase was, on the one hand, the result of the income of the second installment of the payment facilities plan for the balance of the year 2021 and the second advance for the year 2022 of the Companies with balance sheet closing in December, corresponding to the Income Tax,” says the official report.
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Original source in Spanish

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