Its president Argentina, Alberto Fernandesdefended yesterday Monday (6/6) his decision to draft a law which provides for the imposition special fee to its “unexpected winners” war in Ukraineamid rising prices in some sectors, such as agri-food, which he described as “immoral”, as inflation affects the most vulnerable households.
The war in Ukraine and its impact on prices “Affect millions of people but benefit a very small number who earn huge (amounts)”said President Alberto Fernandez, presenting, at the presidency, the bill for the imposition of the special tax.
Talk about “immorality”for “Indecency” where “We can not allow” in a country where Poverty affects almost four in ten (37% of the population) and the forecast for inflation this year is that it will reach 60-70%.
Mr Fernandez did not specify which areas the fee would cover, however referred to the increases in recent months in the prices of wheat, sunflower, corn, beef, items exported by Argentina.
The “Peronist” president (center-left), with Economy Minister Martin Guzman at his side, urged parliament, to which the bill will be tabled in the coming weeks, to approve this tax, assuring that it is anything but a radical leftist measure.
“We will do nothing but what people have already done and are doing again today”referring to the excise tax announced in May by the British government on the profits of the oil giants, by the Italian government on the “super profits” of the energy sector, or even a similar tax imposed on the US in 1917, with a background the First World War.
The center-left government, however, knows that passing the bill will be difficult in parliament, as it does not have an absolute majority in either of its two parties, even though it has the largest parliamentary groups. The opposition has already clarified how it will oppose.
Neither Mr. Fernandez nor Mr. Guzman clarified what the excise tax rate would be, limiting themselves to saying it would apply to companies. with a turnover of more than 1 billion pesos ($ 8.2 million) and a net profit of 10% in 2022, or a 10% increase between 2021 and 2022. The rate may be around 15%.
The bill has the approval of the International Monetary Fund (IMF), with which Buenos Aires recently closed $ 44 billion debt restructuring agreement.
The president and the economy minister did not say whether they have any particular target for the revenue that will come from the state, which is expected to go to the General Redistribution Fund.
Against the background of the escalating inflationary crisis, as the impact of the war in Ukraine worsens chronic inflation in Argentina (50.9% in 2021), the government has been forced in recent months to take action to alleviate the shock of rising prices in the most vulnerable households. In the first four months of 2022, inflation reached 23.1%.
Source: News Beast
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