Economy Minister Axel Kicillof came on stage today to speak out about the controversial income tax, which opposition leaders and unions claim to be excessive to workers and amid pressure to raise its floor from 15,000 to 22,000 pesos.
Speaking to reporters at the Ministry, he began stressing that “only 11.3 percent of registered workers pay the income tax” so “saying the income tax is paid by all the Argentine workers is false.”
Ratifying the government won’t accept to raise the income tax floor, he went on to announce a reduction in tax scales for workers whose salaries range from 15,000 pesos to 25,000 pesos.
The measure will affect 68 percent of workers who pay the tax, the minister said adding it will represent a 6 percent salary rise for them.
Under the new scale, a married worker with two children earning 20,000 pesos a month will see income tax burdens cut by 69 percent. The Ministry’s changes will leave that worker paying 397 pesos a month, compared to 1,280 pesos previously.
For single taxpayers the reduction is less extreme, but still corresponds to a 32 percent cut. From paying 2,066 pesos from their monthly salary of $20,000, the employee will now pay $1,405.
According to Ministry estimates, those earning $20,000 will hence recover either 5 or 6 percent of their salary thanks to the new measures. Workers on salaries of $25,000 a month will also benefit, although to a lesser degree.
Source: Buenos Aires hERALD