Tax collection in August showed real growth and, for the eighth consecutive month, remained at pre-pandemic levels. Specifically, tax collection increased by 64,2% to $1.005 million, the Ministry of Economy reported on Wednesday (01.09.2021).
"The growth of taxes that grant progressivity to the tax system was essential to achieve this performance, driven by the modifications incorporated in the Law of Social Solidarity and Productive Reactivation," indicated the Treasury.
“The increase in tax revenue in August is explained by the recovery of economic activity in 2021, the boost in foreign trade taxes and the acceleration of the growth of Social Security resources,” the statement said.
This dynamic was driven by “taxes that respond to economic activity (+ 74,0% yoy) Fuel tax (+84,3% y-o-y), VAT (+75,9% y-o-y), Internal taxes (+55,5% y-o-y) and the Tax on Credits and Debits (+66,0% y-o-y); the latter continues to be affected by the exemption for the Health sector.”
The growth of taxes that grant progressivity to the tax system was fundamental to achieve this performance, driven by the modifications incorporated in the Law of Social Solidarity and Productive Reactivation“said the statement.
The taxes linked to the recent performance of economic activity stood out, growing 74,0% year-on-year. “Within this group, increases were observed in the tax on Fuels (84,3% ai), the IVA (75,9% ia), the Internal Shared Taxes (60,5% ia) and the Tax on Credits and Debits (66,0% y-o-y). Regarding the latter, it should be noted that the exemption for the Health sector remains in force and that the same month of the previous year presented an additional business day," explained the Ministry of Economy. Tax collection in August showed real growth and, for the eighth consecutive month, remained at pre-pandemic levels. Specifically, collection increased 64,2% to $1.005 million, as reported this Wednesday (01.09.2021).
Meanwhile, it was observed that the Tax on Earnings The increase in personal income tax grew by 63,9% in real terms, even under the effects of the recent reforms implemented to alleviate the tax burden of employees. The impact of the increase in personal deductions on the income of these taxpayers was also accentuated by the refund of differences owed from previous months.
Foreign trade taxes maintained a good performance. Export duties grew 131,9% year-on-year. For their part, the Import duties and statistical taxes together increased by 80,7% year-on-year.
Finally, the collection associated with the social securityl grew 63,7% yoy, registering an acceleration for the second consecutive month. “The boost comes in part from the recovery of wages following the various collective bargaining agreements. Personal Contributions showed an increase of 63,2% yoy and Employer Contributions 64,3% yoy. The collection of the latter is reduced by the exemptions deployed by the National State to alleviate the tax burden on the Health sector, the critical sectors of the REPRO II program and the provinces of the Northern Region,” concluded the Ministry of Economy.
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