Argentina's government on Monday scrapped a hefty 30% “blanket” surcharge imposed by the previous socialist government on foreign currency debit and credit card purchases.
The measures are reportedly advantage The move, which affects around 11 million citizens, follows President Javier Millay's decision not to renew taxes beyond the five-year deadline set by law.
The now-defunct “Tax for an Inclusive and United Argentina” (better known by its Spanish acronym “PAIS”) is a “temporary tax” introduced by socialist former president Alberto Fernández. It was a surcharge of a “target” nature. signed It will become law when the government takes office in December. 2019.
The PAIS tax is part of a broader “Social Solidarity” bill that would reduce Argentines' foreign currency by imposing surcharges of up to 30 percent on card transactions such as purchases, foreign currency withdrawals, airline tickets, and tourist purchases. They tried to prevent them from spending their reserves. package. By 2023, PAIS surcharges have been extended to other foreign currency transactions, including payments for digital services, international cargo, and imported goods in general.
PAIS was part of the previous leftist government's highly complex multi-layered foreign exchange management plan, which Millais had vowed to abolish completely in 2025.
Millay confirmed the abolition of the PAIS tax in remarks made Friday at the inauguration of the new headquarters of the Córdoba Stock Exchange. The Argentine president further noted that unlike previous instances of “temporary” taxes in Argentina, which have been in place since the 1930s, his administration is the first in Argentina's history to fulfill a government's promise to abolish the tax. He said that.
“From Monday, the PAIS tax will be abolished. In other words, this is the first time in history that a government has precisely followed the abolition of the tax,” Millais said. said.
“And we have eliminated others. There is even better news: the reduction in taxes will continue, as will our irrevocable promise to return surplus funds to taxpayers in the form of relief.” “Because less taxes means more competitiveness…for everyone,” he continued.
argentina outlet reported It was announced on Monday that the elimination of the PAIS tax has resulted in a 30% reduction in foreign currency purchase card operations and an 8% reduction in subscription services such as Netflix and Spotify. Local newspaper Clarin reports that as local banks adapt their systems to reflect future statement changes, credit card purchases made after Sunday will be subject to tax, regardless of when the purchase was made. explained that it is not subject to.
Argentina Outlet Infobae reported Private sector estimates show that the elimination of the PAIS tax will reduce costs for companies, increase the availability of imported goods on the domestic market, and have a positive impact on production chains that rely on foreign and large-scale supplies. It is said that Various products for consumers.
Earlier this month, in a speech to mark the first anniversary of her administration, Millais said: announced The Argentine government is preparing to introduce fundamental reforms for next year, abolishing 90% of existing taxes.
Additionally, Millay said his administration would abolish the remaining currency control measures it inherited, allowing all Argentines to trade in the currency of their choice.
By the time Millay took office in December 2023, Argentina was on the brink of complete economic collapse due to the disastrous socialist policies implemented by his predecessor. Immediately after taking office, Milley took a series of drastic “shock therapy” measures to avert the country's economic collapse and avert a hyperinflationary spiral. Millay's policies dramatically reduced Argentina's inflation and poverty rates.
The president said on Friday that his administration's economic policies are bringing Argentina “closer every day” to a definitive exit from foreign exchange controls, which he called “an abomination that should never have existed in the first place.” Ta.
