recaudación tributaria - Oficina de Presupuesto del Congreso

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.

FISCAL IMPACT OF BILL ON SUBSIDY FOR THE IMPORT OF DIGITAL SERVICES

by Juan Fourcaud | Nov 3, 2020 | Cost Estimates

Bill S-2286/2020 states that the economic context resulting from the pandemic has led to a growth of micro and small enterprises in Argentina, many of them highly dependent on the internet.

In this framework, the Bill proposes a tax relief for the imports of digital services for entrepreneurs consisting in the exemption of PAIS tax and VAT for imported digital services, provided that such imports are made by entrepreneurs or Venture Capital Institutions in accordance with Law No. 27,349 of Support to Venture Capital.

It is estimated that the fiscal impact would imply a drop in tax revenues of AR$3.28 billion for the year 2021.

FISCAL IMPACT OF BILL ON THE CREATION OF A REGISTRY OF ENERGY-INTENSIVE IRRIGATORS (S-0024/2020)

by Juan Fourcaud | Oct 22, 2020 | Cost Estimates

The Bill proposes the creation of a Registry of agricultural producers that use irrigation with intensive electric energy consumption and provides for a set of tax measures to encourage those producers to replace that system for less energy-demanding irrigation technologies.

The benefits included in the Bill are a reduction in the VAT rate for the purchase of electric energy, reduction in current energy rates and access to credit lines for energy reconversion.

The analysis carried out by OPC shows that the direct fiscal impact is very low, since the VAT reduction mechanism on purchases of certain links in the production chain only has a financial impact for the taxpayers subject to that tax.

BUDGET BILL 2021– ANALYSIS OF TAX RESOURCES

by Juan Fourcaud | Oct 20, 2020 | Budget Law

The Budget Bill for the year 2021 estimates tax revenue at AR$6.46 trillion for 2020, and AR$9.3 trillion for 2021. The expected dynamics imply an increase of 28.6% YoY for 2020 and 43.9% for 2021.

OPC (Argentine Congressional Budget Office) estimates for 2020 a total national public sector tax revenue at AR$6.35 billion – AR$74.23 billion (1.1%) lower than the estimate made by the Ministry of Economy. For 2021, OPC’s estimates are up to AR$8.9 trillion – AR$395.47 billion lower than the 2021 Budget Bill projections.

In real terms, 2021 Budget Bill projects a revenue decline of 9% YoY for 2020, and a 9.7% YoY recovery for next year. OPC estimates that tax revenue will increase 6% YoY in 2021, a less positive dynamic than that projected in the 2021 Budget Bill.

OPC estimates that in 2021 the national government will receive 64.3% of tax resources (AR$5.98 trillion). Of this total, 35% (AR$3.26 trillion) will go to Social Security Agencies, 29.1% (AR$ 2.7 trillion) to the Central Administration, and 0.2% (AR$15.26 billion) to

Decentralized Agencies. Other entities will receive 3.7% of total resources (AR$341.99 billion), and the provinces 32% (AR$2.98 trillion).

The Budget Bill estimates that during 2021 tax expenditures will reach 2.64% of GDP (AR$995.8 billion). Of that total, 73.9% are related to special regimes included in the current tax legislation (AR$735.66 billion) and the remaining is allocated to various economic promotion programs (AR$260.14 billion).

These figures do not show significant changes with respect to 2020, a year in which the total tax expenditure is expected to reach AR$714.73 billion, equivalent to 2.63% of GDP, with a similar composition.