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News > Argentina

Argentina: Senate Approves a Law Taxing Large Fortunes

  • Senate debating the new Tax Bill, Buenos Aires, Argentina, Dec. 4, 2020.

    Senate debating the new Tax Bill, Buenos Aires, Argentina, Dec. 4, 2020. | Photo: Twitter/ @anabelfsagasti

Published 6 December 2020
Opinion

The initiative was presented by legislator Maximo Kirchner and it is expected to raise US$5.14 million.

Argentina's Senate approved by 42 votes in favor and 26 against a law that rules the payment of an extraordinary tax (2 percent) by people living in the country who have declared a fortune worth over US$2.3 million.

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The initiative was presented by legislator Maximo Kirchner and it is expected to raise US$5.14 million.

Twenty-five percent of the revenue will be allocated to natural gas production programs and projects. Another 40 percent will be used to cover the expenses caused by the pandemic and to subsidize small and medium enterprises.

Meanwhile, 45 percent will be distributed among the Student Support Program (Progresar) and infrastructure improvement projects.

The percentage rises to 2.25 percent for those who have assets valued between US$3.4 million and US$4.6 million, while 2.75 percent will be applied when the fortunes rank from US$6 million to US$9.2 million.

Senate's Budget and Finance Committee President Carlos Caserio supported the approval of the law, noting that the resources obtained with the tax "will be a great boost for Argentina".

Meanwhile, the leader of the opposition Luis Naidenoff rejected the Senate's decision, claiming the law "is not the best response to the Argentine reality".

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