Argentina's tax revenue increased by 32% YoY in the ninth month of the year, the Federal Public Revenue Administration announced on Monday (1.10.2018).
Tax revenue reached 295.818 million pesos, helped by taxes linked to Foreign Trade, as well as net VAT, debits and credits, profits and social security.
Detail
VATIn the case of VAT, the tax component grew by 37,5% and the customs 74%. The increase in VAT was mitigated by higher customs VAT credits, due to the increase in the exchange rate and by transfers between accounts with origin in VAT and destination in the Customs VAT for $ 1.400 billion.
“VAT performed very well thanks to the process of formalizing the economy that we are implementing and the notable growth of electronic transactions, which add up to a 30% year-on-year growth,” said Federal Administrator Leandro Cuccioli.
Debits and credits.The tax on current account debits and credits showed a rise of 36,4%. Due to its settlement mechanism, it had one less business day than in September 2017; if this difference were not considered, the interannual variation would have been 42,6%.
Profits.For its part, income tax collection increased by 14,6%, an increase that was moderated because the income in September 2017 of the second advance payment by individuals this year will be received in October. “Thus, next month there will be a compensation in this tax,” explained Cuccioli.
Social SecurityMeanwhile, social security system revenues increased by 22,2%, an increase that was cut back by the effects of the tax reform. Otherwise, the increase would have been 24,8%.
Foreign tradeIn terms of foreign trade, export duties increased by 165,5%, while import duties grew by 56 percent.
Withholdings and exchange rate
In the case of withholdings, the result was favored by the rise in the exchange rate and the implementation of the Additional Export Duty. For this last concept They earned nearly $2.900 billion.
As for import duties, while the increase in the exchange rate had a positive impact, the increase was lower than expected because September had one less working day than the same period in the previous year.
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