Argentina proposes ‘extraordinary income’ tax amid grains windfalls
BUENOS AIRES (Reuters) – Argentina’s authorities proposed a invoice Monday to tax corporations that earn “extraordinary earnings” from the warfare in Ukraine, a measure that will notably have an effect on the nation’s grains trade.
The measure is seen as an try by Argentina’s center-left authorities to scale back the fiscal deficit and assist Latin America’s third-largest economic system take care of galloping inflation, which is on monitor to exceed 70% this yr.
The invoice goals to levy an extra 15% tax on corporations with earnings of over 1 billion pesos (about $8.3 million) in 2022 whose revenue margin is both greater than 10% in actual phrases or is 20% increased than in 2021.
Analysts say sectors like meals, power and agriculture could be most affected, on condition that Argentina is likely one of the largest suppliers of grains and meat on the earth.
The proposal should be accredited by Congress, the place it is going to want the help of an opposition that has already voiced its rejection.
The invoice is endorsed by the Worldwide Financial Fund (IMF), with whom Argentina not too long ago restructured a $44 billion debt.
“There are sectors which have benefited from the warfare as a result of rise in commodities,” stated Financial system Minister Martin Guzman when presenting the invoice to Congress alongside President Alberto Fernandez.
(Trade charge: 1 greenback = 121.11 pesos)
(Reporting by Jorge Otaola; Writing by Carolina Pulice; modifying by Richard Pullin)
