Argentina's tax revenue is expected to hit a record high in December, led by revenue from a successful government-led tax amnesty, according to a Reuters poll released Thursday (29.12.2016).
Specialists agreed that The extraordinary collection is mainly due to the support that 'tax sincerity' has, at a time when the country's economy is hit by a recession and high inflation that is estimated to be around 40% annually.
The analysts consulted project a collection in the order record of 241.500 billion pesos (about US$15.343 billion) on average for December, compared to the almost 200.000 billion that was estimated prior to a key figure for the amnesty and the 145.034 billion pesos collected in December 2015.
If the trend indicated by specialists is confirmed, the collection would show a an increase of around 66,5% year-on-year.
The projections of those surveyed ranged from a minimum collection of 203.400 billion pesos to a maximum of 265.620 billion, which shows a disparate year-on-year increase of between 40% and 83% for the collection of the last month of the year.
According to the Government's projections, 82.000 billion pesos have been accumulated in tariffs that must be paid by those who signed up for the amnesty.
"The additional revenue resulting from the 'whitewash' (amnesty) would increase (…) the regular revenue for the month of December," said the consultancy Invenómica.
The government of President Mauricio Macri launched a plan in early August to allow Argentines to put their undeclared assets in order to raise funds to reactivate the economy, an initiative that ends in March.
"When countries carry out these exercises (of amnesty) the estimate of (tax) collection is in the order of half a point of GDP. We are already doubling that and we still need an additional stage," said the Minister of Finance, Alfonso Prat-Gay, who will leave his post this week after Macri's decision to ask him to resign.
The Federal Public Revenue Administration (AFIP) is expected to announce December's tax collections and the year-to-date total on Monday afternoon.
Source: Reuters
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