Tax collection in July registered a growth of 66,9% compared to the same month in 2020, with which he accumulated in the first seven months an increase of 68% year-on-year, reported the Ministry of Economy.
Tax revenues in July totaled $933.858 billion, which implies an increase of 1,1% compared to June, and the Treasury Palace stressed that The collection registered “an increase above the price increase of the period”.
“The increase in July tax collection of 66,9% year-on-year It is explained by the recovery of the economy in 2021, by the boost in foreign trade taxes and, in part, by the low comparison base in 2020 due to the pandemic.", the economic portfolio highlighted.
In this context, he highlighted that "the accumulated collection up to the seventh month of the year is at pre-pandemic levels.”
However, he noted that “In monthly terms, a slowdown in growth was observed from the collection due to the outbreak of the second wave and the postponement of the due dates of certain taxes"although he stressed that taxes "related to activity and employment continue to show signs of recovery"
The Ministry of Economy noted that “This dynamic was driven by Export Duties (+131,9%) and the performance of economic activity (72,4% year-on-year)
Within this group, the report indicated that increases were observed in the fuel tax (85,2% year-on-year), VAT (86,9% year-on-year) and the Tax on Credits and Debits (81,6% year-on-year), and recalled that “the latter continues to be affected by the exemption for the Health sector.”
Income tax increased by 68,5% year-on-year, which “meant that it grew in real terms, even with some effects that affected its collection,” the report said.
In this regard, he explained that "The increase in personal deductions on the income of employees has an impact; In addition, this month they began to be carried out "refunds for differences owed from previous months to said taxpayers."
“On the other hand, although in 2020 the deadline for tax returns for individuals was also extended to August, a partial amount was received in July, raising the comparison base,” he said.
Regarding foreign trade taxes, they again performed well. Export duties grew by 131,9% year-on-year, while import duties and statistical taxes together increased by 96,3% year-on-year.
Social security revenue grew 62,6% year-on-year, showing an acceleration with respect to June, “driven in part by the recovery of wages following the various collective bargaining agreements.”
In particular, Personal Contributions showed a year-on-year increase of 60,8%, and Employer Contributions had an increase of 65,8%.
As for Personal Property - it fell 14,2% -, As with profits, its collection was affected by the postponement to August of the due date for the balance of the sworn statementsUnlike this year, in 2020 the revenue from this concept was partially received in July, raising the comparison base and explaining the year-on-year drop.
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