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Contrary to what was promised during the campaign, the Government raises taxes - Infobae
Source:
www.infobae.com
September 16, 2024
Except for taxpayers with high net worth abroad, the rest of the citizens have been making a useless sacrifice so far because taxes continue to rise. There are also worrying developments in the foreign trade sector.
By Guillaume Michel
Javier Milei, yesterday in Congress (Photos: Charly Diaz Azcue / Senate Communication)
The “estimation of tax resources” of the 2025 Budget project presented yesterday by President Javier Milei in Congress confirms that, contrary to what was promised during the campaign, taxes are rising, even in relative terms (%) with respect to GDP.
According to the Government itself, the tax burden would rise from 22.37% of GDP in 2024 to 22.92% in 2025, with the following details:
The only exception is the personal property tax, which the same economic team justifies on page 48 of the general budget message:
“The collection of the Personal Property Tax is estimated to reach $833,345.8 million, showing a decrease of 22.7%. This decrease is mainly explained by the modifications introduced by Law 27,743, which increased the general non-taxable minimum and the one linked to housing. In turn, it reduced the rates applicable to assets located abroad, equalizing the tax treatment in this sense with those located in the country, also including a modification of scale sections and differential treatment for compliant taxpayers. For its part, the special income regime of the Personal Property Tax would negatively affect the collection corresponding to individuals for the year 2025.”
Except for taxpayers with high net worth abroad, the rest of the citizens have been making a useless sacrifice so far because taxes continue to rise.
Furthermore, the PAIS tax will expire on 12/24/2024. It will not be lowered. It will simply cease to be valid.
The Budget also brought worrying developments in terms of foreign trade.
From the table “Foreign trade projections for goods and services” (page 39 of the Budget message) it appears that exports for 2025 are projected at USD 104.03 billion. A growth of +9% compared to the previous year.
In the following paragraph, the Government projects a Nominal Exchange Rate (TCN) of $1,207 by December 2025. A total devaluation of +18.3%. But on page 50 of the same document, they project a growth in collection of Export Duties, or withholdings, of +100.4 percent.
Let's review:
Source:
A diferencia de lo prometido en campaña, el Gobierno sube los impuestos
Salvo para los contribuyentes con altos patrimonios en el exterior, el resto de la ciudadanía hace un sacrificio inútil hasta ahora porque los impuestos siguen aumentando
www.infobae.com
September 16, 2024
Except for taxpayers with high net worth abroad, the rest of the citizens have been making a useless sacrifice so far because taxes continue to rise. There are also worrying developments in the foreign trade sector.
By Guillaume Michel
Javier Milei, yesterday in Congress (Photos: Charly Diaz Azcue / Senate Communication)
The “estimation of tax resources” of the 2025 Budget project presented yesterday by President Javier Milei in Congress confirms that, contrary to what was promised during the campaign, taxes are rising, even in relative terms (%) with respect to GDP.
According to the Government itself, the tax burden would rise from 22.37% of GDP in 2024 to 22.92% in 2025, with the following details:
- Income tax (workers) goes from 4.42% of GDP in 2024 to 5.05% of GDP in 2025.
- Export duties (agricultural and productive sector), from 0.96% of GDP in 2024 to 1.43% of GDP in 2025.
- Fuel tax, increases from 0.38% of GDP in 2024 to 0.73% of GDP in 2025.
- The pressure on the Monotributista doubles. The Monotributo goes from 0.04% of GDP in 2024 to 0.09% of GDP in 2025.
The only exception is the personal property tax, which the same economic team justifies on page 48 of the general budget message:
“The collection of the Personal Property Tax is estimated to reach $833,345.8 million, showing a decrease of 22.7%. This decrease is mainly explained by the modifications introduced by Law 27,743, which increased the general non-taxable minimum and the one linked to housing. In turn, it reduced the rates applicable to assets located abroad, equalizing the tax treatment in this sense with those located in the country, also including a modification of scale sections and differential treatment for compliant taxpayers. For its part, the special income regime of the Personal Property Tax would negatively affect the collection corresponding to individuals for the year 2025.”
Except for taxpayers with high net worth abroad, the rest of the citizens have been making a useless sacrifice so far because taxes continue to rise.
Furthermore, the PAIS tax will expire on 12/24/2024. It will not be lowered. It will simply cease to be valid.
The Budget also brought worrying developments in terms of foreign trade.
From the table “Foreign trade projections for goods and services” (page 39 of the Budget message) it appears that exports for 2025 are projected at USD 104.03 billion. A growth of +9% compared to the previous year.
In the following paragraph, the Government projects a Nominal Exchange Rate (TCN) of $1,207 by December 2025. A total devaluation of +18.3%. But on page 50 of the same document, they project a growth in collection of Export Duties, or withholdings, of +100.4 percent.
Let's review:
- The Executive Branch does not have the authority to raise export duties; for most goods, this must be done through Congress.
- Export volume grows by +9%.
- The Exchange Rate grows by 18%.
- But the projected collection is +100.4%.
