Argentina announces a series of economic measures, including tax for ‘windfall’

RIO DE JANEIRO, BRAZIL – On April 18, the Argentine government announced a series of economic measures to restore the population’s purchasing power and combat the effects of the shock caused by the war in Ukraine. Among the elements is an increase in the amounts of a series of aids paid by the government, including support for retirees and workers with no formal income. To offset the costs of the measures, the administration announced a tax on “windfall gains.”

“We have to ask those who have had a windfall to contribute,” President Alberto Fernandez said at an event at the Casa Rosada in which he spoke about the actions. In his view, it is necessary that “big companies contribute to generating more development and equality.” Also present, Argentina’s Economy Minister Martín Guzmán said a tax would be established on such unexpected revenue components in companies with taxable net profits exceeding ARS 1 billion (US$8.8 million) in the year.

“If this unexpected income is channeled to productive investment, the contribution will be lower because we seek to have an Argentina with more capacity to generate work,” said Guzmán. According to him, the government’s central objective is to “guarantee the growth of workers’ purchasing power across the labor and productive spectrum.”

“The goals of the fiscal, monetary, and reserve accumulation plans have been met. The economic policy executed is in line with what was planned,” the minister said. “We are seeking to build a mechanism to ensure that the shock of the war does not have an unequal and regressive impact on our society,” Guzmán pointed out. According to him, the measures promote the real recovery of purchasing power in the country.

With information from Estadão