Argentina Breaks Tax Targets

January 3, 2013 Taxation in Argentina

Argentina_El Calafate_109BUENOS AIRES – Argentina has exceeded its own tax targets for 2012 and has seen the growth of its revenues reach double digits.

The federal tax authorities of Argentina  (AFIP) started the year on some good news, announcing on January 2nd that over the course of 2012 the country exceeded its tax revenue targets by ARS 12.3 billion.

In 2012 the cumulative tax revenues collected grew by 26 percent compared to last year, reaching ARS 679.8 billion, while the tax revenues in for 2011 were ARS 540.1 billion.

The head of the AFIP Ricardo Echegaray said that the nearly of the third of the increase in collections can be attributed directly to increases in revenues from Value Added Tax, which brought in ARS 18.2 billion in December alone.

According to international tax experts, the incredible increase in tax revenues in Argentina is caused by the country’s steep inflation levels, which are currently estimated to be as high as 25 percent, although official government estimates claim that inflation has not even reached 11 percent.

Photo by jjay69