After reformulating some points of the omnibus law, the Government decided to present another project to restore the Income Tax on workers’ salaries. The initiative will be named after “Personal Income Tax” and will contemplate a non-taxable minimum of $1,350,000 gross.
The Executive Branch will send to Congress this Tuesday the 23rd a personal income tax bill with which will seek to replace the so-called Category IV Income Tax, they reported this Monday. The project contemplates that the Government will retain the powers to modify the scales.
Official sources clarified that the amount of $1,350,000 gross will be adjusted quarterly through the Consumer Price Index (IPC) published by INDEC. In this way, around 800,000 people will pay the tax again.
According to reports, the Executive is finishing fine-tuning the details, but the document will be submitted to the Chamber of Deputies in the next few hours. The project will be presented in the middle of the negotiation with the provinces for the treatment of the omnibus law and one day after the general strike called by the CGT.
The comings and goings of the Income Tax
In September of last year, a month before the general elections, the Minister of Economy and presidential candidate for Unión por la Patria, Sergio Massa, promoted a project to modify the Income Tax law which consisted, among other issues, of eliminating the fourth category and therefore, exempted some 700,000 employees from payment in a dependency relationship.
This project It was approved by 135 to 103 votes in Deputies and had, among others, the support of the deputies of La Libertad Avanza: andJavier Milei himself and his presidential running mate, Victoria Villarruel. Then, in the Senate, it was approved by the majority of the then ruling party in the Senate.
But once Milei assumed the presidency, several provinces asked to participate in what is known as the check tax because they had lost income due to the modification that they had supported at that time.
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On December 19, eight Peronist governors highlighted the need to search for “compensation tools” for the provincial coffers in the face of the strong devaluation of the peso and the “loss of co-shareable resources”, although they considered that “The reversal of the Income Tax would not be the appropriate path”but rather the “70%” co-participation of the tax on the check.
This was stated in a document spread on social networks and signed by the leaders Axel Kicillof (Buenos Aires), Sergio Ziliotto (La Pampa), Raúl Jalil (Catamarca), Osvaldo Jaldo (Tucumán), Gildo Insfrán (Formosa), Ricardo Quintela ( La Rioja), Gustavo Melella (Tierra del Fuego) and Gerardo Zamora (Santiago del Estero).
The statement was made after a meeting of governors with President Milei, the Minister of the Interior, Guillermo Francos, and other national authorities. The response was immediate and the head of state stated that “in no way” are they going to “share the tax on the check”. “Going backwards with Profits is the solution that allows the provinces to redirect their accounts,” Milei later said in an interview that she gave to Radio Rivadavia.
ML / ds