National tax revenue reached AR$499.53 billion in May, which implied a nominal growth of 12.4% year on year (YoY), but a drop of 21.7% YoY, when adjusted for inflation.
All taxes shrank in real terms, but the sharpest declines were in taxes related to foreign trade and VAT, with decreases of 49.1% and 27.8%, respectively. Both contractions are the sharpest since the beginning of 2002.
The decline in tax revenue during May was explained by the adverse macroeconomic context caused by the COVID-19 pandemic and by the fiscal relief measures implemented by the national government.
There was a record collection of the PAIS Tax (AR$11.9 billion) due to higher purchases of foreign currency.
Resources for the first five months of the year were 16.3% below OPC’s November estimate, basically because of changes in the economic and regulatory situation.
Tax relief measures in the framework of the pandemic in the first five months reduced the estimated revenue by AR$75.93 billion.