In July, funding grew by 9% more than inflation

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In July, funding grew by 9% more than inflation

Carlos Castagneto, new head of AFIP.

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Tax collection arrived in July $ 1.7 trillionan 87% jump from one year to the next that implies a 9% increase in real terms, above inflation, according to the estimate of the consultancy LCG.

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As reported by AFIP, the resources linked to internal activity (DGI) were the engine of the growth of the collection, with a real annual variation of 19%, which implies a slowdown of 4 percentage points compared to the change in June.

The body that Carlos Castagneto leads now has explained that social security contributions they slowed by 7.5 percentage points and grew by only 4% in real terms. For their part, taxes relating to external activities (DGA) marked the second consecutive month of real decline, around 4%.

DGI profit stood out above the rest with a real year-on-year increase of 27%, contributing to 27 points of growth. Crucial was the provision of a special deadline for the fourth category earnings, extended until 15 July.

“The end of the pandemic and the recovery in the level of economic activity, together with the changes in rates, have led to a significant real increase in earnings collections starting in May. This resulted in a real increase in funds sent to the provinces by 16%“said the Argentine Institute of Tax Analysis (IAraf).

The dynamics of Personal Goods also stand out, a tax that increased by 133% in real terms in July, due to the effect of the first installment of the payment facilitation plan and the remaining unpaid balance in June.

As regards the evolution of internal business, Receivables and payables recorded a real annual increase of 8%, followed by VAT, which did so by 6% (down by 3 points compared to June). Due to their relative importance, they accounted for a third of the annual increase (7% and 27%, respectively).

Taxes related to foreign trade it fell for the second consecutive month in real terms, down 4%. “Import-related collection such as import duties and DGA components of VAT and Profits grew by real 3%, 9% and 6% respectively, but these increases were not fully offset by the real 16% drop in duties export “, LCG details.

As a result of an acceleration in inflation and an exchange rate that has adjusted to the downside, in the first seven months of the year export duties add up to a real 14% drop measured in pesos (against a 15% growth measured at the official exchange rate).

“So far this year, the total collection grows by 7% real, generating an increase in tax collection in terms of GDP, a key issue to support total income, which this year does not have the voluntary contribution of last year. In the coming months, the collection of profits should be supported, as the advances are paid on the basis of the previous balance. Inflation and activity will play a key role in the dynamics of the rest, “said Nadin Argañaraz, director of the IAraf.

“For the rest of the year we expect the collection in real terms lose vigor by virtue of a resentment in the level of activity. The higher face value may explain the magnitude of the growth rate, but in real terms we understand that growth should start to slow down. We anticipate a total collection of over $ 18 billion for the current year, about 70% more than a year ago “, underlined by LCG.


Source: Clarin

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