IVA - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL TAX REVENUE – NOVEMBER 2021

by Nicolas Perez | Dec 7, 2021 | Tax Revenue

Tax revenue amounted to ARS1,037,964 million in November, which implied a growth of 59.5% year-on-year (YoY). Adjusted for inflation, it expanded 4.7% YoY.

Among the most significant tax revenues were the increase in VAT and the Tax on Credits and Debits. Export Duties and Social Security resources continued to show a good performance.

The low comparison base attributable to the economic effects of the Mandatory Preventive Social Isolation (ASPO), which came into effect on March 20, 2020, continues to favor the year-on-year comparison, in addition to the increase in the international prices of raw materials and the increase in the nominal exchange rate (30.7% YoY).

ANALYSIS OF NATIONAL TAX REVENUE – AUGUST 2021

by Nicolas Perez | Sep 6, 2021 | Tax Revenue

Tax revenue totaled ARS1.005 trillion in August, an increase of 64.2% year-on-year (YoY). Adjusted for inflation, the increase was 8.1% YoY.

Among the tax resources, the increase in VAT, Tax on Credits and Debits and Profits stand out. Export Duties and Social Security resources continued to show a good performance.

The low comparison base attributable to the economic effects of the Mandatory Preventive Social Isolation (ASPO) that came into force on March 20, 2020, the increase in international prices of raw materials and the increase in the nominal exchange rate (32.6% YoY) contributed favorably to these results, although a deceleration is observed.

ANALYSIS OF NATIONAL TAX REVENUE – JULY 2021

by Nicolas Perez | Aug 6, 2021 | Tax Revenue

Tax revenues totaled ARS933.2 billion in July, which implied an increase of 66.9% year-on-year (YoY). Adjusted for inflation, it expanded 9.9% YoY.

Last month, Value Added Tax (VAT), the main tax source, grew 23.1% in real terms. The Tax on Credits and Debits and Income Tax also rose significantly.

Wealth Tax decreased (43.5%) because of the deferral of the due date for the month of August.

Export Duties (100.8%) and Social Security resources continued to show a good performance.

The low comparison base attributable to the economic effects of the Mandatory Preventive Social Isolation (ASPO) that came into effect on March 20, 2020, the increase in international commodity prices and the increase in the nominal exchange rate (34.6% YoY) contributed favorably to these results.

ANALYSIS OF NATIONAL TAX REVENUE – JUNE 2021

by Nicolas Perez | Jul 7, 2021 | Tax Revenue

In June, tax revenues grew 69% year-on-year in nominal terms and 12.8% adjusted for inflation.

The increase was driven by the depreciation of the exchange rate (37% YoY), the increase in international commodity prices and regulatory changes. But the main factor behind the increase was the low basis of comparison since a year ago the Preventive and Compulsory Social Isolation (ASPO) was fully in force.

Higher customs duties revenues (47.6% YoY) – due to the increase in the exchange rate and the recovery of imports – drove an improvement in VAT.
The nominal increase of the dollar and the values of exported goods promoted an increase of 59.1% in the collection of Export Duties (YoY).
Social Security resources increased for the third consecutive time in eight months, although the expansion of the wage bill has been systematically below the CPI since June 2018.
PAIS Tax collection contracted again in the year-on-year comparison.
The growth of the economy continues to be the main determinant of tax revenue, which fell steadily since mid-2018, due to a lower level of activity and the implementation of Law 27,430 on Tax Reform and began to recover after the worst effects of the measures adopted to contain the health effects of the pandemic.

ANALYSIS OF NATIONAL TAX REVENUE – MAY 2021

by Nicolas Perez | Jun 8, 2021 | Tax Revenue

Partially because of the low basis of comparison, national tax revenue increased 72.7% in nominal terms and 14.3% in real terms as compared to the same month of the previous year.

National Government revenues totaled AR$ 862.48 billion, which was the ninth consecutive month of increase (adjusted for inflation).

This behavior is partly explained by last year’s poor fiscal performance, when the mandatory isolation due to the health crisis was still in force, which lowers the basis for comparison.

The 39% nominal increase in the exchange rate also had an influence, which relatively improved the revenues from Export Duties and from the customs component of VAT, as well as from Income Tax. In addition, regulatory changes boosted the collection of shared taxes.

For taxes related to foreign trade, May 2020 also implied a low baseline, since the settlement of many transactions had been advanced to the end of 2019. An improvement in the international prices of exported goods also had an impact on the tax revenue increase.

In absolute terms, the taxes that most contributed to the increase in revenue were VAT (accounting for 30% of the increase), Income Tax (20.2%), Export Duties (18.3%) and Social Security contributions (19.6%), which rose for the second time in eight months.

The PAIS Tax collected AR$ 5.49 billion in May, which represents a nominal reduction of 53.8%, because of the greater restrictions on the purchase of foreign currency.

ANALYSIS OF NATIONAL TAX REVENUE – APRIL 2021

by Nicolas Perez | May 7, 2021 | Tax Revenue

In April, national tax revenue totaled AR$817.88 billion, the highest increase since April 2003, with a real increase of 40.8% and a nominal increase of 105.5%.

The nominal exchange rate increase and the low base of comparison for last year -when the economic activity was restricted by the preventive and mandatory social isolation- partly explain this result.

Social Security resources grew in real terms for the first time since September 2020.

The most significant variations above inflation were those of Income Tax (36.4% YoY), VAT (35.7%), Wealth Tax (224.5% YoY) and co-participated taxes (154.4% YoY), in some cases because of regulatory amendments that expanded the tax base.

Tax revenue had a negative real increase since January 2020, a situation that was reversed in September 2020 steadily up to date.

PAIS Tax collection shrank again and accrued USD 2.17 billion since its creation.