Argentina Collects Record-Breaking Taxes

March 6, 2013 Taxation in Argentina

Beunos AiresBEUNOS AIRES – Increased consumer prices have spiked collection of taxes in Argentina, resulting in record revenues in February 2013.

On March 4th the  Administración Federal de Ingresos Públicos (AFIP) of Argentina announced that tax revenues over the month of February reached ARS 60.88 billion, approximately 28.8 percent higher than over the same month in 2012.

According to the AFIP, the revenues collected over the course of the month are the highest on record for a February since records began.

The tax revenues exceeded the figures foretasted by the government and by independent economist last year, which estimated that the total tax take would only reach ARS 59.3 billion in February.

The larger than expected growth has been attributed to the effects of the country’s soaring inflation levels, which were officially reported by the government to be 10.8 percent in 2012, but are considered by independent economist to have been as high 25 percent, and resulted in increased consumer spending and VAT revenues.

Collections of all major taxes were reported to have increased in February, with revenues from VAT rising by 32.8 percent to ARS 18.23 billion, social security contribution growing by 30.6 percent to ARS 16.27 billion, and income taxes jumping by an approximate 44.2 percent to ARS 12.76 billion.

Photo by jodastephen