While the Government is putting the final touches on the draft of the Base Law, which is estimated to be sent this Tuesday, the Government released details of the return of the Income Tax. How much will the floor be that the Government seeks to impose? How will it be updated?
The Minister of the Interior, Guillermo Francos, and the Chief of Staff, Nicolás Posse, met this Monday with deputies from the We Make Federal Coalition bloc and the UCR. After the meeting, it emerged that they had reached an agreement to restore Profits, although with a higher floor than that which had been mentioned in the previous days.
Profits: how much is the floor that the Government seeks to impose and how it will be updated
The new floor would reportedly be $1,800,000 for single workers. While in the case of married workers with two children, it would be $2,200,000.
Another novelty that the Personal Income Tax, as it will be called, would bring is that its update would be by CPI, that is, through a formula tied to inflation.
One point that remains to be defined is how often the formula will be applied and the floor will be updated, whether it will be – for example – monthly or quarterly.
Another question is the scales. It was only explained that the new scheme would establish a progressive scale of tax that would start from 5% until reaching 35%. In this way, they pointed out from the ruling party, The aim is for more people to pay the tax, but a smaller amount.
When will the return of Earnings be implemented
There is still a long way to go to restore the Income Tax, which had been eliminated through Congress by the Minister of Economy of Alberto Fernández’s government, Sergio Massa.
First, the Government must send the draft of the Base Law to Congress, something that is estimated to happen today or no later than this Wednesday. The ruling party hopes to discuss the reform package next week in the Budget, General Legislation and Constitutional Affairs Committees of Deputies.
The objective is to discuss the project in the Lower House on April 24, and then send it to the Senate, since the plan is for it to become law before May 24, prior to the signing of the May Pact to which the President He summoned the governors.
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