Argentina Sees Skyrocketing Tax Collections
November 4, 2014 Taxation in Argentina
BEUNOS AIRES – Tax collections in Argentina have continue their astronomical rise, with the government claiming that their crack down on evasion and compliance are responsible for the growth.
On November 3rd the tax authority of Argentina Administración Federal de Ingresos Públicos (AFIP) announced that tax collections in the country over the month of October have undergone significant growth, rising by an estimated 40.8 percent compared to the level seen over the course of the same month in 2013.
The total tax revenue collected over the month of October reached ARS 104. 6 billion, while in October 2013 the level of revenues only reached ARS 74.3 billion.
The increase in the total collections has been attributed to dramatic growth in the revenues gathered from income taxes, VAT, and export rights, which grew by 63 percent, 26.7 percent, and 86.5 percent, respectively.
Over the course of 2014 so far, the AFIP has collected approximately ARS 959.25 billion, an increase of nearly 35 percent from the level of collections seen in the same time in 2013.
Explaining the positive success in tax collections over the course of the year, the AFIP president Ricardo Echegaray said that the increases are due primarily to the authority’s efforts to reduce tax evasion and increase compliance, however, some taxation experts have pointed out that the continually increasing tax revenues could be a product of the country’s significant rate of inflation.
Photo By: Esteban Maringolo