2023-09-15 16:53:05
BUENOS AIRES (AP) — In the midst of overheating inflation and a challenging electoral scenario, Argentine Economy Minister and presidential candidate Sergio Massa will launch a raffle system for cars, motorcycles and household appliances for millions of consumers and merchants.
The measure will come into operation next Monday and is complementary to another previously announced by Massa, consisting of the refund of 21% of the Value Added Tax (VAT) on essential products with which it seeks to improve the purchasing power of citizens. .
All buyers and sellers who use electronic means of payment with a debit card will participate in the draw.
Inflation rose to 12.4% in August — the highest monthly rate since February 1991 — while the year-on-year rate reached 124.4%, one of the highest in the world. The rise in the cost of living was driven primarily by food prices, which increased 15.6%.
The minister’s main rival in the elections in which Peronism is playing for power is the far-right economist Javier Milei, a favorite and who has promised to end inflation, the main problem for the population along with insecurity.
The plan of Massa, candidate of Unión por la Patria, consists of the return of 21% of the total basic basket – made up of different foods and hygiene items – to some nine million workers who earn salaries of up to 708,000 pesos (regarding 1,900 dollars at the official exchange rate). Some seven million retirees and pensioners, self-employed workers and employees who perform domestic tasks will also benefit.
Massa took aim at Milei, from the La Libertad Avanza party, pointing out that with his spending adjustment program he seeks to “eliminate State benefits to retirees and workers.”
These measures were questioned by economists and Massa’s electoral rivals who believe that they will have a negative impact on the fiscal deficit and encourage inflation by putting more cash into circulation.
In a week in which the government sought to counteract the negative data of rising prices, Massa also announced a tax relief for nearly one million workers that will come into effect on October 1 and will rise to 1.7 million pesos per month. , equivalent to $4,800, the floor from which registered workers pay income tax.
Representative Luciano Laspina, who is part of the team of economists of Patricia Bullrich – presidential candidate of the largest opposition force, Together for Change – described the announcement as an “electoral nonsense”. “The lowering of the income tax will be financed by the increase in the inflation tax. “It is an irresponsible, inequitable and extremely irresponsible measure.”
At the beginning of the month, Massa announced an increase in the minimum retirement in addition to credits, monetary reinforcements or tax reductions for different sectors.
To win the elections in the first round, the candidate with the most votes must obtain at least 45% of the votes or 40% and have an advantage of at least 10 percentage points over the second most voted. If not, the two candidates with the most votes will go to a runoff on November 19.
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