Due to the crisis, the collection grows below inflation

For months, the collection has been growing below inflation. The AFIP reported that it collected $ 327,870 million in March, which represents 37.3% more than in the same period of 2018. However, as the inflation of that period was between 51% / 53% (the official data is missing) of Indec on March), the growth of tax revenues was below the rise in the cost of living.

“It is the biggest difference (N. of the R: between raising revenue and inflation) that we have had,” admitted Leandro Cuccioli, head of AFIP, which has been in that role for a year. For the official, a change was made in the way in which the perception of VAT is recorded with the economic slowdown, which contracts the activity.

Tax revenues totaled $ 214,550 million (33% more than in 2018), Social Security added $ 85,692 million (27.3% increase) and foreign trade added $ 27,628 million, with 171% growth. The latter was due to the reinstallation of export rights to grains (corn, wheat) and other agricultural products.

Cuccioli noted that export duties (or retentions) in the “traditional” foreign trade category -such as soy- “were below expectations”. “In March we did not see all the liquidation that was expected,” he said.

“We are still in the first half of the first half”, graficó the official, in relation to that only one quarter of the four that has the year passed. “I think we are going to be a little better in the annualized, when the year ends we will see a real growth in the collection,” he enthused. “We are comparing against the first quarter of 2018, when there was a growth of the economy of 4% (…) and we are still affected by the slowdown at the end of the year,” he said.

On the lack of liquidation of the field’s currency -which was felt in the collection- Cuccioli attributed it to several factors, among which included the storage in “silo bags” and the “electoral scenario”. In any case, he did not want to make any predictions about whether the IMF’s promised revenue goals will be met to obtain access to loans.

“The retentions accumulate in the first quarter of the year $ 51,331 million, which implies a nominal growth equal to 316.3% in relation to the same period in 2018 and a real improvement around 174.7%”, analyzes, however , a report of the Argentine Institute of Fiscal Analysis (Iaraf).

Although the VAT grows below inflation, its internual improvement – of 37% – could be reflecting a part of the increases granted to formal workers in the joint. “In previous months, VAT improved by 32% and before 23%, or 28%,” explained Cuccioli, who sees VAT as a possible indicator of these recompositions. Anyway, believes that tax will also increase in volumes in the coming months. The “net” VAT was $ 108,397 million.

“Given that there is no recovery in the internal component as assumed by AFIP, it is possible to reinstate the perceptions of imported inputs.” It should be remembered that this component was characterized as the real support of VAT collection until October of 2018 “, says Iaraf.

The contributions and contributions in social security were affected by a lower number of registered employees, as reported by the Indec in relation to the work and unemployment data. “For the tax reform and the convergence towards the unification of the aliquot they stopped entering approximately $ 3,000 million,” the AFIP said in a report.

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