OPC 5 Tax Revenue 5 ANALYSIS OF NATIONAL TAX REVENUE – FEBRUARY 2021

ANALYSIS OF NATIONAL TAX REVENUE – FEBRUARY 2021

March 08, 2021

Tax revenue amounted to AR$ 716.6 billion in February 2021, which implied a growth of 51.9% year-on-year (YoY).
For its part, inflation-adjusted revenue expanded by 7.9% YoY, the sixth consecutive improvement and the highest growth since May 2018.

  • Wealth Tax had a real increase of 189.4% YoY because of both the increase in rates and scales provided by the Solidarity Law and the rise in the exchange rate, applied to assets held abroad.
  • Export Duties increased 117% YoY because of the nominal improvement in the exchange rate, the increase in exportable goods and the low base of comparison since many operations of last year were anticipated at the end of 2019.
  • PAIS Tax collected AR$5.98 billion in February, the first nominal decrease of 20.6% as a result of further restrictions on the purchase of foreign currency and the limitations to travel abroad.
  • Revenues from VAT increased by 6.1% YoY thanks to increased customs revenues due to the exchange rate. However, VAT DGI continued to decline (-6.7% YoY), which is a warning sign about the dynamics of the level of activity.
  • Social Security revenues were down 9.6% YoY due to lower registered employment and declining real wages recorded since June 2018.

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