The Federal Public Revenue Administration (AFIP) announced this Friday the tax collection data for the month of May that amounted to $170.345 million in nominal terms and the fall in real terms is worrying.
Although the Administration in charge of Accountant Alberto Abad was in charge of reporting that tax collection was increased by 23,3% compared to May 2015, “omits” to mention that this increase is expressed in nominal values and that the collection fell again for the fourth consecutive month below inflation.
In May 2015, the AFIP had collected $138 billion, which in today's currency (with more than 40% year-on-year inflation according to CABA IPC) is equivalent to $197 billion, representing a 13,76% drop in collections.
The fall in actual tax collection in May is thus added to the red figures in tax collection in February (4,78%), March (3,20%) and April (4,74%).
For its part, the collection of Value Added Tax (VAT), one of the most important indicators of the level of consumption, which had been falling since January, but which had not yet shown red numbers, shows a fall of 1,31% in May compared to the adjusted values of May 2015, even below that of April 2016.
The first quarter of the year had ended with a marked drop in revenue (only mitigated by the revenue in January) and for the second quarter all indicators (decline in activity level, collapse of construction, and contraction of consumption) This trend of tax collection below the inflation level is expected to continue..
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
