Argentine Breaks Tax Revenue Records
June 5, 2013 Taxation in Argentina
BUENOS AIRES – Tax revenues in Argentina are hitting record high levels, in part due to the country’s escalating inflation rates.
In an announcement made on May 3rd the national tax authority of Argentina (Administración Federal de Ingresos Públicos) revealed that tax collections over the month of May have hit an all time high through a time when the government had not hiked any tax rates and had not made any changes to national tax legislation.
According to the tax authority, tax revenues over the course of the months were ARS 77.8 billion, up by 27.4 percent compared to May 2012, when revenues only hit ARS 66.0 billion.
The soaring tax revenues have been attributed to the country’s exceptionally high inflation rate, which helps buoy consumer prices and collections of consumption taxes.
It is currently estimated by independent specialists that the inflation rate in Argentina may be as high as 24 percent, although this rate is more than double the official inflation rate which is being used by the government.
The President of Argentina Cristina Elisabet Fernández de Kirchner has described the rising tax revenues as a sign of the country’s “non-stop growth trends”, and she also said that ” …this is to put an end to the story that only one sector pays taxes… producers, small and medium businessmen, workers, they are all paying taxes.”
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