Tax collection grew by 58,7% in October compared to the same month in 2020, with revenues exceeding one trillion pesos and marking a real improvement of around 5%.
Tax collection thus reached its highest level for the month of October since 2015, with a result that “reflects an expansive dynamic of activity, foreign trade and the labor market,” the Ministry of Economy reported this afternoon.
In October, tax revenues were above inflation for the fourteenth consecutive month, while the cumulative total for the first ten months of the year marked a nominal improvement of 65% compared to the same period in 2020, official sources highlighted.
In that framework, The taxes that grew the most in October were those linked to foreign trade (111,4% year-on-year) and Social Security resources (65%).
This last case marked a significant acceleration compared to last September, largely driven by the recovery of wages following the various collective bargaining agreements of a significant number of unions.
In detail
Likewise, taxes linked to the performance of economic activity grew by 58% year-on-year, among which VAT revenues stood out (51,9%), directly related to the improvement in consumption; the Fuel Tax (98,1%), shared Internal Taxes (66,2%) and the tax on Credit and Debit operations (65,7%).
The collection last October even exceeded the values recorded during the same month between 2016 and 2020, placing the resources accumulated over the first ten months of the year at levels higher than those of the pre-pandemic stage.
"This trend will allow us to continue with policies that promote activity and employment, while guaranteeing the sustainability of public accounts," the Ministry of Finance stated.
In October, the performance of Social Security revenue collection stood out, growing 65% year-on-year and registering a significant acceleration compared to the previous month.
In particular, the improvement was explained by income from Personal Contributions, which showed an increase of 58,9%, while Employer Contributions grew 68,5% year-on-year.
Another item that showed a consistent increase was Income Tax, with a year-on-year increase of 57,7%.
In this last case, the striking fact was that growth occurred even under the effects of the recent reforms implemented to alleviate the tax burden on employees.
In turn, the impact of the increase in personal deductions on the income of these taxpayers was accentuated by the return of the differences owed from previous months.
As regards foreign trade, October – as in the previous months – continued to record high growth rates.
In this item, the income recorded in the concept of Export duties, which increased by 135,2%; while the Import duties and statistical tax together increased by 66,1%.
Finally, the Ministry of Economy reported that in October the collection of Personal Property Taxes marked a drop compared to the same month in 2020.
In explaining the decrease, the portfolio led by Martín Guzmán said that it was due to a “high comparison base”, because in 2020 the payment of the differential rate for assets abroad was concentrated in the sworn declaration and its subsequent payment facility regime, while in 2021 its payment was distributed between advances and sworn declaration.
Source: Telam
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