Minister of Economy of Argentina announces relief in salary tax

The Minister of Economy of ArgentinaSergio Massa, announced on Sunday that the Government will alleviate in November the Income Tax that charges workers, amid union demands for a rate that cuts the average and high wages.

Massa did not indicate how many workers will benefit from the rise in the floor from which the tax is paid or what the fiscal cost of the measure will be, but it will surely be welcome at a time when the inflation forecast for 2022 exceeds 100%, which strongly erodes purchasing power.

“It will take effect from November 1, it will be above 330,000 pesos (about 2,176 dollars),” Massa said in an interview with Radio Rivadavia. “It’s a bit of alleviating the situation of the workers based on a decision made by the State,” she added.

The minister, who last week met in the United States with authorities from the International Monetary Fund and the Paris Club, also said that the Government of Argentina is negotiating a new price program and anticipated that it will grant a food booster to vulnerable sectors before end of the year.

“We have been working with mass consumption companies,” said Massa, adding that the idea is to implement a broader and longer price program than the one that currently exists. “There are 20 or 25 that represent 65% of what we Argentines consume,” she added.

The Consumer Price Index of Argentina grew 6.2% in September, the National Institute of Statistics and Census announced on Friday, a figure that was lower than expected by analysts.

“I’m not satisfied with the (inflation) number, nor do I like it. I understand that what we have to do is guarantee that this downward path that we began to travel in some way is consolidated, that is the challenge,” Massa said. “We understand that inflation is the worst punishment that any worker, any retiree in Argentina can have,” she added.

The high inflation and imbalances in the economy generate discomfort in the workers due to the deterioration of income and pushed nearly 40% of the population into poverty, which causes growing demonstrations in the streets.

When asked about the number of prices other than the dollar that prevail in the country, Massa said that his goal is “to find a macroeconomic balance.”

“The challenge that we have to go through as a government and the responsibility that I have as a minister is every week to deepen measures to reduce the gap and to try to ensure that the difference in exchange rates, whatever they are called, have somewhere a balance point,” he said.

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