2024-01-03 23:26:00
After the Federal Public Revenue Administration (AFIP) would inform that the tax collection increased 156.7% year-on-year in December, a private report revealed that The resources collected by the State in 2023 fell 7% in real terms.
The AFIP reported the total tax collection amounted to $43 billion and from the Argentine Institute of Fiscal Analysis (IARAF) stated that “discounting the inflationary process implies a real decrease of 7% and by excluding taxes linked to foreign trade, it would decrease in real terms by 3.1%.”
Inflation: a consulting firm assured that December closed with increases of 23.4%
Tax collection 2023: the taxes that grew the most and the least
In this sense, the author of the analysis, Nadine Argañarazexplained that the three taxes with the greatest participation were the VAT, Contributions and contributions to Social Security and Income Tax. This trio accumulated a participation of 76%.
“In terms of real interannual variation, in the accumulated of these twelve months, the taxes with the greatest drop would have been export duties (61.9%), Fuels (45.4%) and Profits (17.3%). The taxes with the greatest increase would have been PAIS tax (63.8%), VAT (9%) and co-participating internal taxes (2.2%),” he said.
On the other hand, the report indicates that in the last month of last year national revenue “would have decreased by a real 17%” compared to the same period in 2022 and, if foreign trade taxes were excluded, the fall would deepen to 19%.
“Analyzing by tax, the collection that would fall the most would be the fuel tax, which would have fallen by 64% in real terms year-on-year, followed by Profits with 40% and export duties with 39.2%. The taxes that increased the most In real terms, they would be PAIS tax at 210% and VAT at 2.1%,” details Argañaraz’s analysis.
At the same time, the economist highlighted that the effective tax pressure of 2023 recorded a decrease of 1.4 percentage points in the Gross Domestic Product (GDP). Once once more, without accounting for taxes on foreign trade, the decrease would be 0.5 pp of GDP.
“The national effective tax pressureunderstood as national revenue in terms of GDP, would end in 2023 with a level of 22.8% of GDPwhich would imply a decrease of 1.4 percentage points in GDP compared to 2022,” the report highlights.
However, he adds that the collection statistics implicitly include the impact of the drought that affected Argentina “by excluding from the analysis the taxes associated with foreign trade (export duties, import duties and PAIS tax).”
In this sense, the tax burdens with the greatest increase in effective pressure would have been the VAT, with an increase of 0.8% of GDP and the PAIS tax with an increase of 0.38%.
Fernando Savore: “The drop in sales that we are going to have in January and February will be 50%”
“Taxes on credits and debits in c/c, social security, co-participating internal, Personal Property and import duties practically do not register significant variations. At the other extreme are fuels, export duties and Profits as those taxes that had the greatest decrease in relative importance to GDP,” the letter concludes.
Tax collection: the taxes that grew the most and the least in 2023
According to the information provided by the AFIP, the collection of tax resources reached 2023, which implies a nominal year-on-year jump of 115.1%. Thus, state income from tax collection traveled at a speed much slower than inflation.
The data released by the collection agency indicate that the PAIS Solidarity Tax was the one that grew the most during the previous year: $1,510,889 million were raised, an interannual advance of 335,5%. Second place went to VAT with a nominal sum of $14,791,510 million and a real jump of 153.7%. The tribute to Debits and Credits completed the podium with $3,146,166 million and an increase of 134.2%.
On the contrary, the effects of the drought undermined the Export Rights, which closed in negative territory of -6.3%. Earnings also showed a weak performance, growing only 86.3%. Third place went to Import Duties and others with a jump of 110.2%.
MFN / Gi
1704325292
#Tax #collection #lost #inflation
