The exemption from Income Tax for registered employees under law 27,617 implies a reduction of ARS56.6 billion in annual revenues for the Treasury, which increases to ARS75.8 billion if the contributors of other provincial pension systems, armed forces and security forces are included.

It may be that the calculation includes a certain overestimation caused by the difficulty of accurately excluding members of the Judicial Branch who are exempted from income tax or the workers of Patagones, who are benefited with an increase in the special deduction.

It is clearly impossible to make inter-temporal comparisons of tax expenditures when these are estimated on a reference framework based on the regulations in force, in contexts of frequent regulatory changes, as is the case of Income Tax in Argentina in recent years.

Things change if we work on an ideal theoretical tax framework, as opposed to the legislation in force. The change in the basis of comparison could result in important differences: the fiscal cost of the promotional exemption of Tierra del Fuego increases from ARS7.3 billion to ARS13.2 billion and that of the amendment of Law 27,617 increases from ARS75.8 billion to ARS362.5 billion.

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