economist Emmanuel Alvarez Aguis It proposed the application of a new cash tax to replace another well-known tax. evaluation promote the activities of digital transfer it is more traceable Customs Collection Management Agency (arc).
The initiative aims to make economic activity more transparent, but President Javier Millay has voiced opposition to the proposal, which has also caused controversy in other areas.
What is the new cash tax they are promoting?
In a radio interview, the former economic vice-minister said, redesign the tax system. Within this framework, he proposed abolishing the check tax and replacing it with a cash tax that would be applied instead. Withdrawals are subject to 10% tax At an ATM or in-store.
Alvarez Aguis is Cash withdrawal tax 10%. This measure requires Replace current taxes on bank debits and creditsIt is known as. check taxes. The proposal was controversial and questioned by President Javier Millay.
The aim of this initiative is to reduce the use of cash in the economy and promote digital payment methods. According to his vision, this will facilitate the normalization of trade and tax evasion will be reduced.
Additionally, in an interview with LN+, Álvarez Aguis explained his idea in three steps, calling it an easy process to apply.
“Argentina has a big problem. We, the people who work full-time, pay taxes that other people who work full-time don’t.” informal. Not everyone in the informal sector is a criminal. Some companies will merge once the tax becomes official.” he deepened.
Phased introduction of new taxes
Along these lines, he explained that his proposal starts with “eliminating the check tax.” In his opinion, the tax harms those who operate and conduct formal banking operations. However, he acknowledged that the budget deficit would increase if the measure were implemented. To make up for this difference, the company introduced a proposal to charge 10% on cash operations.
“What happens to consumers when you tax cash? They say, ‘I’m going to pay by electronic means or a virtual wallet,’ and then the kiosks are forced to formalize rather than charge cash. If you want to formalize kiosks with the current tax structure, you’re dissolving it,” he said.
How are taxes applied to cash?
The burden associated with the use of pesos will be placed directly on consumers. Since it is an indirect tax, each business is cash It’s more expensive, but will encourage people to pay by card or e-wallet.
In this way, companies will be forced to: accept bank mediaexplained a former Kirchner official.
As a result, formal taxpayers will benefit from not paying taxes on their checks. According to Álvarez Aguis, this measure: There will be a fairer tax system..
Javier Millay’s refusal
President Millais strongly criticized the proposed tax on the use of cash on social networks, saying of the initiative:robbery“And declared it contrary to economic freedom. In turn, the ruling party described the measure as ‘regressive.’
from central government They argued that it was not time to create new taxes, but to abolish existing ones. Moreover, national leaders had already promised reduce tax burden.
I want to meet you!
Register for free Enjoy a personalized experience at El Cronista.
About The Author
