Argentina: entry into force of the “extraordinary” tax on large fortunes

In Argentina, wealth is driven by large grain farmers and cattle breeders (illustrative image).

JUAN MABROMATA / AFP

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2 min

Argentina, a country in recession since 2018, has implemented a “solidarity and extraordinary” tax on large fortunes.

It was defended by the majority of center-left president Alberto Fernandez, and adopted on December 4 by parliamentarians to help the poorest and small businesses overcome the coronavirus crisis.

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This exceptional tax will be paid by households whose wealth exceeds 200 million pesos, or nearly 2 million euros.

12,000 people are affected by this new measure, knowing that there are 44 million inhabitants in Argentina, 41% of whom live below the poverty line.

Progressive rates will be levied on these 12,000 contributors: 3.5% on goods declared in Argentina and more than 5% on assets abroad.

This tax should bring back two and a half million euros to the authorities.

They will be injected in almost equal parts, between 15 and 25%, into the health system, social assistance, small and medium-sized businesses, grants for students, and households that do not have access to the natural gas network. .

This gesture of solidarity is however strongly criticized.

By the liberal opposition which considers it "confiscatory" and especially by the powerful rural society.

In Argentina, wealth is indeed drawn by the large grain farmers and cattle breeders.

They fear that this extraordinary tax will become permanent.

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