THE OPC PRESENTED THE LATEST BUDGET EXECUTION REPORT TO LEGISLATORS

THE OPC PRESENTED THE LATEST BUDGET EXECUTION REPORT TO LEGISLATORS

The Argentine Congressional Budget Office presented the latest published report on the Analysis of the National Government Budget Execution – January 2024 to national legislators and their advisors.

This is one of the periodic works conducted by the OPC with the purpose of monitoring revenues collected and expenditures accrued.

The presentation was given by the OPC Director, Gabriel Esterelles, together with the directors of Sustainability and Public Debt Analysis, Joel Vaisman; of Fiscal and Tax Analysis, Martín López Amorós; of Budget Analysis, Ignacio Lohle, and the analyst of this last directorate, María Laura Cafarelli.

The purpose of the online meeting was to provide members of the Chamber of Deputies and the Senate, as well as their assistants, with technical elements to improve the understanding of the monthly report disseminated through the OPC web page, offering, at the same time, the possibility of clarifying doubts about the methodology used and the results obtained.

The good reception of this new work modality was the basis for the decision to repeat it periodically to consolidate the technical dialogue between the OPC and the National Congress.

ANALYSIS OF BILL “BASES AND STARTING POINTS FOR THE FREEDOM OF ARGENTINES” – REPORT 7 – TAX MEASURES – SECOND PART

ANALYSIS OF BILL “BASES AND STARTING POINTS FOR THE FREEDOM OF ARGENTINES” – REPORT 7 – TAX MEASURES – SECOND PART

The analysis refers to a set of sections that create a new regime for the regularization of assets, modifies the Wealth Tax and the Internal Taxes on cigarettes.

  • The proposed regularization, for residents and non-residents, would allow formalizing of assets up to USD100,000 without being taxed and, starting from that base, it provides for a tax to be settled in U.S. dollars.
  • If the “laundering” is of cash transferred to the Special Account for the Regularization of Assets, the tax will not apply.
  • The amount collected under the Asset Regularization Regime does not have a specific allocation, so its revenue would be shareable with the provinces.
  • It creates the Special Income Regime for Wealth Tax, establishing a scheme for the advance payment of five fiscal years.
  • The tables applicable to the Wealth Tax for assets in Argentina and abroad are unified and the maximum tax rate is reduced by 30%. In the future, a single rate of 0.5% will apply.
  • With the same stock of taxable assets in 2023, the collection in terms of GDP would drop from 0.68 to 0.19% over the next five fiscal years.
  • The ad valorem tax rate on cigarettes is increased by 4.29% (from 70% to 73%), and the minimum tax is eliminated.
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