Argentina’s lower house approves income tax reform benefitting over 1.2 million people

RIO DE JANEIRO, BRAZIL – The Argentine Chamber of Deputies approved early Sunday morning, March 28, a bill to reform the income tax, which will exempt more than 1,000,000 workers from this tax and improve salaried and retired workers’ purchasing power.

After almost 21 hours of debate and presentations by 70 legislators, the initiative was approved by a margin of 241 votes in favor, three abstentions, and no opposing votes.

Its approval at this stage opens the way for its analysis, as from next Tuesday, in the Senate.

The bill endorsed by the Chamber of Deputies exempts from personal income taxes workers who earn up to 150,000 pesos (about US$1,637) and retirees up to eight times their income.

According to Argentine Government data, this reform will benefit around 1,267,000 people, including workers and retirees.

If the project is approved, it is estimated that 93 percent of the workers and 200,000 retirees who currently have this obligation will be exempted from paying this tax.

According to local media, the reform would be implemented retroactively as of January 1. Based on this, it is expected that the Government will return during the next months the withholdings corresponding to the months elapsed in 2021.

During the debate, the president of the Frente de Todos block of deputies, Máximo Kirchner, questioned former President Mauricio Macri for having assured that he would eliminate the income tax, when during his administration the opposite actually took place, since “the number of workers affected” by the tax “doubled”, he said.

Deputy José Luis Ramón, a representative of the parliamentary interbloc Federal Unity and Equity, declared at the end of the session that “today we have managed to agree on a project that protects the income of families.”

Source: TeleSur

For the full picture, see our Brazil Tax Reform: Complete Guide.