Year-To-Date Tax Collection In Argentina Down 7%, Export Duties Soften Blow

10/2/2024 8:18:29 AM

(MENAFN- The Rio Times) September's tax collection reached 12,844,457 million pesos ($35.68 billion), marking a 198.5% nominal increase from last year. However, when adjusted for inflation, this figure represents a 3.4% real decrease.

The decline, though less severe than August's 14% drop, was cushioned by income from palliative fiscal measures. The personal property tax played a crucial role in September's revenue.

Nadin Argañaraz, director of the Argentine Institute of Fiscal Analysis, noted that excluding this tax, the real decrease would have been 9.6%. The tax saw a 453% real year-on-year increase, its best monthly collection in 27 years.

This exceptional performance stems from reforms in the "Bases" law, which reduced tax rates gradually and allowed advance payments for five fiscal periods. Argañaraz cautioned that this advance income won't be available in future collections.

Fuel tax revenue grew by 87% in real terms, while Social Security increased by 4%. Export duties contributed significantly, with a 2.8% real increase and income of 539,862 million pesos ($1.5 billion).

Argentina's Tax Revenue Decline
However, the PAIS tax, VAT, and income tax all experienced real declines. The PAIS tax collected 432,520 million pesos ($1.2 billion).

Meanwhile, VAT and Income Tax brought in 4,155,791 million pesos ($11.54 billion) and 2,154,299 million pesos ($5.98 billion), respectively.

These figures represent real declines of 41%, 16.3%, and 13% for each tax. The year-to-date tax collection shows a 7% real decrease compared to the same period in 2023.

Excluding export duties, this decline reaches 12%. Personal Property Tax, Internal Shared Taxes, and Social Security saw the largest drops over the nine-month period.

Despite September's strong performance, the Personal Property Tax couldn't reverse its downward trend from previous months. The PAIS tax, despite recent declines, remains the highest real revenue increase for the year so far.

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