In the context of inflationary peak that reached 12.4% in Augustthe Government launched a series of measures that contemplate the creation of the ‘Buy without VAT’ program, an initiative designed to reduce the tax burden of the products that make up the Basic Food Basket. The VAT refund on the purchase of food will benefit retirees, monotributistas and workers who do not pay earnings.
The ‘Buy without VAT’ program will include two instances:
1) Through an AFIP resolution, it was established that the measures in question will be implemented as of next Monday September 18 until the end of the year.
2) At the same time, a bill will be sent to Congress in order to continue the application of the benefits.
Debit card purchases. Photo: Telam
The initiative will be applied automatically in operations carried out with a debit card. That is, the beneficiaries will not have to carry out ‘any procedure’, as detailed by the head of Economy, Sergio Massa.
“He The system is automatic, all shops, supermarkets and minimarkets, greengrocers, butchers, fruit shops, that sell this type of products are automatically enabled.because it is concentrated for what it is food and drinks, fruits and vegetables and meat centrally, as well as personal hygiene products and the household basket. In some way with the objective of understanding that the basic basket is covered and compensated by this benefit,” explained the head of the Treasury Palace.
The current tax refund scheme has a return limit that is around $18,800. In order to deepen the refund mechanism, the Government will send the bill to Deputies so that The benefit is extended until next year and to increase the refund limit up to $23,000 per month.
Basic food basket. Photo: Telam
With the implementation of the program, 21% of the amount of the purchase operations will be returned, “with a limit equivalent to 21% of the value of the Basic Food Basket for 4 members”.
To calculate this expense per family group, a household consisting of a 35-year-old man, a 31-year-old woman, a 6-year-old son and an 8-year-old daughter was taken as a reference parameter. The value of spending per family was calculated at $111,642, which is equivalent to a return of $23 thousand per month per beneficiary.
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Beneficiaries of ‘Buy without VAT’
Sergio Massa asked “the businesses that use formal sales so as not to steal the benefit of the VAT refund from the people. And workers, monotributistas, beneficiaries of the Universal Allowance, retirees and pensioners use their debit card because this It gives them back purchasing power and within 48 hours they will have the VAT refund money credited to their account. without having to do any paperwork.”
Regarding the beneficiaries of the program, the Government official clarified that “the return to the 7 million retirees and pensioners of the Social Security System of the Argentine Republic is maintained.”
“We have also incorporated into the benefit the 2.3 million monotributistas who have no other income, that is, they are pure monotributists, the category of their contribution does not matter, also to this benefit. And we have also consolidated the Universal Child Allowance as part of the beneficiaries of this program. Likewise, the 440 thousand workers in private homes They will also be included in this benefit,” Massa announced.
7 million Retirees and Pensioners 2.5 million people with Universal Child Allowance (AUH) 2.7 million monotributistas of all categories 9 million employees in a dependency relationship with income of up to 6 SMVM (today at $ 118,000, therefore with income less than $708,000) (they are those who were not benefited by the increase in the non-taxable minimum in income tax) 440 thousand workers of the Private Home Personnel Regime
CA/ED