The Minister of Economy, Sergio Massa announced that the Executive Branch will send a project to Congress on Monday to make the VAT refund “permanent.” for years and not during the period that was established during the last few days. The announcement was made during the launch of a new series of measures, this time from relief to tax burdens for self-employed workers and small and medium-sized businesses (SMEs).
«We are going to send to Congress a bill that establishes a permanent VAT refund system on the basic basket»so that the homonymous measure that came into force last Monday «does not remain in a measure of this context» economic and electoral situation, indicated the head of the Treasury Palace.
Massa praised the results of the VAT discounts implemented in recent days and specified that, so far, there have been around “3.3 million people who have already received the refund”.
“This was the first step in the journey that Argentina must take to move towards a more progressive tax system, in which the greatest effort falls on those who can most and not on those who have the least”defined during a call that took place in the Council of Economic Sciences.
Measures for self-employed and monotributistas
Then he presented the tax relief initiatives for the self-employed and monotributistas. Some of them will remain in the hands of Congress since, like those that were applied in recent days.
“With them we seek to consolidate the capacity to generate employment, the reconstitution of working capital and the possibility of projecting 2024”he pointed out and denied that everything established in recent weeks has “hurt public accounts.”
One of them will be the measure that avoids raise the billing floor to avoid the “jump” from the monotax to the General Regime. The project will be presented next week and will be in the hands of the Budget and Finance Commission, headed by Carlos Heller.
The universe of beneficiaries is 701 thousand (337 thousand professionals and service providers, and 364 thousand merchants). CEOs, bank managers and other high positions were left out.
Tax relief for professionals in the monotax:
- Exclusions are suspended for exceeding the billing limit until January of next year, and automatic cancellation suspension for non-payment.
- It is estimated that the number of monotributist professionals benefited is 1 million people.
Tax relief for SMEs
This is a measure on payment plans that will allow them to regularize debts with the following conditions:
- 120 monthly installments
- Valid until the end of the year
- Include obligations due until August of this year, which can include plans that expired.
The interest rate will be 4.14 percent (70 percent of the compensatory interest rate), which will allow SMEs to reconstitute the working capital affected during the last months of inflation.