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ECONOMY | 23-01-2024 13:33

Milei seeks to increase number of Argentines paying income tax

Proposal that will be sent to Congress on Tuesday establishes that individuals making more than 1.3 million pesos (US$1,583) a month should by paying income tax.

President Javier Milei will propose new rules to increase the number of Argentines paying income tax as part of a strategy to shore up government finances, according to two government officials familiar with the plan.

The proposal that will be sent to Congress on Tuesday establishes that individuals making more than 1.3 million pesos (US$1,583) a month will be subject to the tax, the officials said, asking for anonymity because the plan hasn’t been made public yet. 

Once the fiscal and macroeconomic situation improves, the government will consider lowering taxes, Presidential Spokesman Manuel Adorni told reporters Tuesday morning, confirming the bill would be presented to lawmakers later in the day. Adorni described taxes in Argentina as “nefarious” and “too high.”

The floor for payment of income tax will be adjusted every quarter according to the inflation rate, the officials said. The proposal was first reported by La Nación newspaper.

Argentines who receive less than 15 times the minimum wage, or about 2.3 million pesos, have been exempt from income tax since October. The change was made by then-economy minister Sergio Massa, who was seeking to boost his popularity ahead of the presidential election he eventually lost to Milei.

Milei, a one-term congressman, voted alongside the Peronist government in favor of the income tax reduction proposed by Massa.

His position changed this year because of the need to reach fiscal balance, Adorni said Tuesday.

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by Manuela Tobias, Bloomberg

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