Tax collection in February reached 716.595 billion pesos, with a year-on-year (y-o-y) growth of 51,9%, driven by the favorable international context for the main export products, the Law of Social Solidarity and Productive Reactivation and the performance of taxes such as VAT, Profits and shared internal taxes.
The Ministry of Economy reported on Monday afternoon (01.03.2021) that with the February results, national tax collection accumulated six consecutive months of positive real variation, that is, growth above inflation.
The foreign trade taxes recorded an increase of 161 % ia, among which export duties stood out, which showed an increase of 205% ia and collected a total of 64.434 million pesos, an increase that responded to the maintenance of the favorable international context for the main export products.
Regarding the taxes covered by the Solidarity Law, the boost came from the collection of 21.125 billion pesos through Personal Property (307% yoy), while the PAIS tax registered a nominal drop of 20,6% yoy, due to a lower demand for dollars for hoarding and travel abroad, totaling 5.987 billion.
"Although there is a seasonal component of increased demand for pesos during the first months of the year, the magnitude of the decline (in demand for dollars) indicates an improvement in confidence," the Ministry of Economy said in a statement.
As for taxes linked to economic activity, the Value Added Tax (VAT) collected 212.043 million and showed an increase of 49,3% year-on-year, above the inflation levels of the last 12 months.
However, the composition of VAT showed different behaviors since the DGI VAT, linked to the domestic market, increased by 31,4% (139.813 billion pesos) while the VAT linked to the General Directorate of Customs increased by 90,7% to reach 82.700 billion pesos.
However, the Ministry of Economy pointed out that, "if we focus on those taxes that depend particularly on the domestic market, the increase in income tax (57,8% yoy) and shared domestic taxes (60,7% yoy) stands out."
Finally, taxes associated with social security collected 155.890 billion and registered an increase of 27,2% yoy, explained particularly by increases in Personal Contributions (27,2%) up to 61.932 billion pesos and Employer Contributions (27,6% yoy), which collected 92.044 billion pesos.
In this regard, the portfolio in charge of Martín Guzmán pointed out that "both taxes have been registering a slight but sustained recovery, which is reflected in the acceleration of year-on-year growth for the second consecutive month in the case of the former and for the fifth month in the case of the latter."
The decrease in both taxes is due to the impact of the pandemic on the labor market and the drop in the number of formal employees, which, despite the recovery of activity in the industrial and manufacturing sector, has not yet managed to reestablish pre-pandemic levels in the areas of Hospitality and Cultural Activities, among others.
On the other hand, regarding Employer Contributions, the Ministry of Economy highlighted that "the maintenance of the reduction of these employer contributions for the health sector has an impact."
"Thus, favourable international conditions in a context that is moving towards financial normalisation, boosting exports, the progressive recovery of productive activity and the gradual transition of labour market dynamics continue to drive resource growth," the Ministry of Economy said.
Aduana News foi o primeiro jornal aduaneiro da Argentina a lançar sua versão digital. Com mais de 20 anos de trajetória, suas publicações e iniciativas têm como objetivo oferecer o conhecimento mais relevante sobre temas aduaneiros, contribuindo para a promoção do comércio seguro e da facilitação do comércio na região.
