The rTax collection in February amounted to 172.222 billion pesos, with a year-on-year increase of 27,8 percent, driven by VAT, the tax on bank transactions and contributions linked to Social Security.
In this way, tax collection closed andThe first two months of the year with revenues of 383.635 billion pesos, 29 percent more than what was recorded in the January-February period of last year, reported the head of the Federal Public Revenue Administration (AFIP) Alberto Abad.
"This collection scheme more fully reflects the economic structure that began to form in 2016, with greater strength in the domestic market, and a reduction in tax pressure for Profits and regional economies"Abad said during a press conference.
The official highlighted the 41,5% growth recorded in VAT, a tax that reflects the behavior of the domestic market, which is thus at similar numbers to the accumulated rise in inflation over the last twelve months, according to the projection of the Buenos Aires Statistics Office. Abada said that in February there was "consumption with greater firmness".
The tax on bank debits and credits also reflected a higher nominal increase, exceeding 12.700 billion pesos, 45 percent more than the February 2016 figure.
Meanwhile, the Social Security System reflected a 40 percent increase to reach 50.900 billion pesos, due to the nominal increase in salaries verified in this period, "and with employee figures very close to those of February of last year, according to our first estimates," Abad explained.
On the other hand, there was an increase of only 16,3 percent for the payment of Income Tax, with just over 35.300 billion pesos, "where the reduction of the burden in the fourth category had a strong impact," said the head of the AFIP.
Added to this is a 70 percent drop in export duties, which amounted to just over 1.000 billion pesos, due to a combination of factors, including the 5 percent drop in soybean withholdings carried out last year, a lower volume sold abroad, since a larger quantity was shipped in February of last year than in previous months, following the devaluation, and lower tax pressure on oilseed exports.
With regard to the money laundering, Abad highlighted that during February 1.066 million pesos were collected in taxes from the fine contemplated in the plan for the Externalization of Capital that closes on March 31.
In addition, the AFIP increased VAT refunds "in all respects" by 85 percent to reach 8.500 billion pesos in the first two months, "which represents working capital for companies and not just for large ones."
In this regard, Abad said that "we are confident that we will be able to clear all the stock of returns that we owe by June."
At the press conference, the official stressed that during the last year there was a reduction the tax pressure that weighs on taxpayers: "Between last year and this one, the national government reduced the tax burden by two points of GDP, so that it is now around 32 percent," said Abbot.
To this we must add another six percentage points charged by the provinces and municipalities, according to official estimates.
To continue lowering the tax burden "we have to broaden the base, and There is no possibility of tax reform if the formalization of the economy does not increase", said the head of the AFIP.
According to figures handled by the agency itself, 30 percent of those who should pay VAT, around 34 percent of those who should contribute to social security, and between 40 and 45 percent of those who should pay income tax are paying irregularly.
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