The Lower House’s budget commission will start debating an addendum to the 2024 budget bill on Wednesday which aims to eliminate a series of tax expenditures to reach a 1% surplus. Overall, tax expenditure is equivalent to 4.72% of Argentina’s gross domestic product (GDP). In a message from the Economy Ministry, the government highlighted certain costs and “tax benefits with a negative impact on the budget” amounting to 2.24% GDP, suggesting that the Lower House debate reducing those specific topics when addressing the budget. On the cutting board are income tax breaks for judges, exporters with value-added tax (VAT) benefits, and an industrial development scheme in Tierra del Fuego province. These tax benefits, differential systems, and budget subsidies “particularly favor large companies and corporations” and have “a significant negative impact on the sustainability of public accounts by creating permanent tax collection reductions,” the document says.

Source: Bueno Aires Herald October 25, 2023 03:12 UTC