President Cristina Fernández de Kirchner has announced an exemption from income tax over the end-of-year bonuses of all workers earning up to 35,000 pesos.
Ms Kirchner made the announcement during her closing speech at the Argentine Industrial Union’s (UIA) annual meeting in Buenos Aires City.
“We have decided to exempt workers from paying income tax over the end-of-year bonus to boost consumption,” the President explained during her speech.
The measure will benefit nearly 800,000 workers, out of the nearly 1 million that pay the income tax in Argentina.
“The income tax is getting more progressive over time, as it reached 14% of workers during the 90s and now it is up to 20%,” CFK said, indirectly questioning opposition presidential candidate and Renewal Front lawmaker Sergio Massa, who this week advocated for a progressive elimination of the tax.
“They say we don’t care about workers… I don’t think there’s anyone that can seriously doubt our economic and political model does not stress work creation. And where were they in the 90’s when government policies destroyed employment?,” she added.
Ms Kirchner then detailed that the money perceived for the income tax is destined to the ANSeS social security agency (20%), the National Treasury (34%) and Provinces (the remaining 46%).
buenosairesherald.com