Deputies turn 2021 Budget into law and approve “solidarity contribution”
20 noviembre 2020

ARGENTINA

On November 17, the Chamber of Deputies adopted the bill for the 2021 Budget and also passed the “Solidarity and Extraordinary Contribution” bill (known as “Tax on Large Fortunes”) with 133 votes in favor, 115 against and 2 abstentions. To become law, the text must be treated by the Senate.

 

After returning from the Senate due to a modification in expense reports, the 2021 Budget received 139 votes in favor, 20 against and 83 abstentions.

During the debate of the “solidarity contribution”, the main promoter and author of the initiative, Maximo Kirchner (Frente de Todos – ruling party), said that “Argentina needs us to find a point of a balance and agreement, and we need the private sector to find a way for all Argentines to move forward.” In addition, he added that “the solidarity contribution will also help us to get more vaccines.”

However, the head of the opposition inter-bloc Juntos por el Cambio, Mario Negri, rejected the initiative saying that “Argentina cannot take much more, there is uncertainty due to the pandemic, the economic situation and the fiscal environment. In addition, there is institutional and even electoral uncertainty.” He added that “we must solve such uncertainty and foster confidence… The Argentines do not know where the president is headed,” he emphasized.

It is worth remembering that the bill establishes that the extraordinary tax applies to individuals and undivided estates in the country and abroad, and covers the totality of their assets in the country and abroad valued for 200 million pesos and above. This will be calculated on assets existing on the date when the law comes into effect. The tax rate will vary between 2 and 5.25% as appropriate.

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