Argentina: Congress Debates Tax Bill on Large Fortunes

Argentina's Congress is set to debate on Tuesday a Tax Bill on Large Fortunes aimed at supporting the State's response in the midst of the COVID-19 pandemic.

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Reaching 0.08 percent of the economically active population in the country, the so-called Law of Solidarity and Extraordinary Contribution to Great Fortunes seeks that people who have a patrimony of over US$3 million pay a tax of 2 to 3 percent.

The Bill establishes that 20 percent of the collection will be destined for the purchase of equipment and critical supplies to tackle the current health emergency. Meanwhile, part of the taxes will be also used to support small and medium businesses, the Progresar scholarship program, natural gas exploration, and development projects, and to urbanize villas and settlements.

Meanwhile, opposition parties, among them the Together for Change coalition led by former President Mauricio Macri have announced their rejection of the Bill.

"Today, in Barrio Luna, together with Martin Rodriguez and hundreds of fellows, walking and talking with the neighbors about the tax bill on large fortunes. All of us, we are going to put Argentina on its feet."

Congress will debate also the modification of Law 26.815 on Fire Management, which establishes a minimum period of years to guarantee the recovery and restoration of burned surfaces. The Yolanda law that sets mandatory environmental training within the Public Administration and the 2021 Budget Bill.

The Tax Bill on Large Fortune will impose a one-time tax and is being promoted by the Executive branch at the Frente de Todos coalition's proposal.

"it is a contribution designed so that what is collected has a specific allocation, such as solving problems in the neighborhoods where four million Argentines live, overcrowded, without the right to housing, improve living conditions and also generate work." Minister of Social Development Daniel Arroyo said.