2024-03-07 22:12:00
In the midst of the discussion with the governors over the withdrawal of funds and the call for the May Pact, the government of Javier Miley hinted that could collect income tax retroactively due to an alleged error in the regulations that suspended the payment of the tax during the administration of former Minister of Economy Sergio Massa.
The announcement was made by the Minister of the Interior Guillermo Francos in the prelude to the meeting with the provincial leaders agreed for Friday, March 8. The end of the summit is to establish positions for the signing of the 10 points presented by Milei during the opening of the ordinary sessions of Congress.
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The Government analyzes collecting profits retroactively
“The decree was done so badly…There was a decree that the Massa government sanctioned by which The power of companies to make withholdings from employees in a dependency relationship was removedwho are the ones who paid this tax in the fourth category,” Francos began by saying in radio statements.
According to the main political sword of the libertarian government, at the time of sanctioning the law that caused some 800,000 taxpayers to stop paying Profits, it was carried out “for the fiscal period of 2024, with which those months of the year 2023 in which the withholding was not made, the tax is not exempt“.
“All those people who were left in that situation, in reality, If the issue is not resolved with this law, they will be subject to paying for that quarterthose three months or four months of the year 2023. They will be subject to the payment of Income Tax because it is the 2023 fiscal period and the law raised it starting from the 2024 fiscal period. It is an issue that must be solved,” he stressed. the national official.
The reversal of the tax was included in the fiscal chapter of the Law of Bases and Starting Points for the Freedom of Argentines that ended up shipwrecking in the Chamber of Deputies. In full negotiations with the opposition, The ruling party decided to remove from the Omnibus law the section that contained, among other initiatives, the restitution of Profits.
The parliamentary offering obtained the approval of opposition legislators and the mega project achieved general approval. However, at the time of debating each article in particular, the session was adjourned by decision of La Libertad Avanza and the package of hundreds of laws was shipwrecked.
In this sense, Guillermo Francos considered that Profits “It is the most progressive tax that existsit is actually an income tax and it exists all over the world. “Multilateral organizations cried out: ‘How are they going to get the most progressive tax that exists’. “There was widespread questioning of that measure,” he said.
In a nod to the governors, Francos stated that the tax burden in question “directly impacts the revenue of the provincesso it is true that the provinces had a loss and the Government’s intention is to restore them.”
The chiaroscuros of the Profits reform
The Earnings reform promoted by Massa was approved by Congress at the end of September 2023. It establishes the elimination of the fourth category and that only those who receive more than 15 Minimum, Vital and Mobile Wages (SMVM). Today that amount is located in $3.042.000.
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As it was a co-participating tax, the 24 districts felt the blow to their coffers due to the drastic reduction in resources. Contrary to libertarian philosophy, Javier Miley and its ministers seek to accelerate the restitution of the burden with the aim of negotiating with provincial leaders and, simultaneously, reducing the fiscal deficit at the national level.
Indeed, the road map of the head of the Treasury Palace, Luis Caputo, contemplated tax reversal in the projection of the balance of public accounts. In addition to the increase in the PAIS tax for exports to 17.5%, Caputo estimated income of 0.4% of the Gross Domestic Product (GDP) with the replacement of Profits.
The position of the governors on Profits
Beyond the Government’s designs, some governors have already spoken out against the return of the aforementioned tax. Such is the case of the boss of Córdoba, Martin Llaryorapointing out that it is “a mistake with the recession, go back to salaries that are depressed by inflation.
“Something must be done about high incomes, progressive, but not with a value that affects workers”indicated the successor of Juan Schiaretti during a television interview, marking a counterpoint with the position of the ruling party.
His Santa Fe counterpart expressed his opinion along the same lines, Maximiliano Pullaromaintaining that he has “many doubts” regarding the reversal of Profits. “When he took it out he did a lot of damage to Argentina, but many of us are already working to correct this, particularly my province. With a tax of these characteristics that is going to hit the middle class, we have to carefully evaluate who we are going to make pay. If it is the wealthiest sectors, Santa Fe will agree; If it is the middle class, you have many doubts”, he stated.
MFN / Gi
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