Argentina announced this Friday that it is cutting the tax on average wages to adjust for salary adjustments this year, in line with high inflation plaguing the country, which may exceed 60% this year.
The measure, requested by the unions, has cast doubt on the government as it means lower tax collections at a time when an agreement with the International Monetary Fund to restructure the country’s $44 billion debt must be reviewed.
During the announcement, Economy Minister Martín Guzmán said that 1.2 million workers will no longer pay taxes compared to 2019.
He added that all of the economic policies we have carried out are a plan that transforms reality (…) ensuring that Argentina continues on the path to recovery and improving its collection capacity.
The change to the Income Tax will exempt employees who earn up to 280,792 pesos ($2,348 at the official exchange rate) per month, whose wages are adjusted for inflation last year, and therefore pay higher taxes. , despite having equal or lower purchasing power.
source: Noticias
