Argentine Congress approves dubious wealth tax as pandemic hits state coffers

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Argentine Congress approves dubious wealth tax as pandemic hits state coffers

Late on Friday, the Argentine Congress had voted 42-26 to approve a wealth tax which in effect would incline a one-time taxation on people having had a large personal fortune as the heavily indebted Government which had defaulted over $65 billion worth of sovereign debts earlier this year, appears to be making a last-ditch attempt to curette as many as it could in order to buoy up the country’s revenues which had faltered lavishly over the recent past amid a pandemic outbreak at large, marking up a highly dubitable approach that could pour fresh scorns over the images of left-leaning Governments across the globe.

In point of fact, latest move from the Argentine Government of President Alberto Fernandez came forth as the third-largest economy in South America behind Mexico and Brazil, had been heading towards its third straight year of recession with literally no beacon of hope awaiting at the end of the tunnel, while the beleaguered LATAM economy had also been battling a higher inflation alongside a rapid hike in poverty.

Argentine Senate votes to approve dubious wealth tax

Aside from that, Argentine Chamber of Commerce had confirmed at its official Twitter account earlier on Saturday that the Senators had approved the highly contemptuous “solidarity and extraordinary contribution law” on Friday night, which in effect would enable the Argentine Government to impose at least 2 per cent in additional levies to individual having assets of more than $2.45 million or 200 million Argentine peso, as the Government has been looking to coffer a lump-sum of $3.7 billion.

At this standpoint, experts were quoted saying that the LATAM nation which once had offered refuge to Nazi war criminals in exchange for large sums, but often touted itself as one of the oldest democracies across the globe, would highly unlikely to shelve as much as $3.7 billion in additional wealth taxation given the scale of US Dollar-buying spree in black market that led to a 36.33 per cent plunge in the valuation of Argentine Peso year-to-date against its American peer to 81.33 peso per Dollar as of Friday’s market closure.

Besides, the people settled at the top of fiscal pyramid had never been too short-sighted to see the Government move coming along which might dampen hopes of a one-off thievery to raise billions of dollars in additional taxes from the nation’s wealthiest citizens, said the analysts.

Nonetheless, if successful, the Argentine Government had promised to expend that total in a swathe of reforms such as stockpiling the toolkits required to battle past the pandemic, developing the nation’s natgas sector and offering assistance to small- and medium-scaled companies, the ruling party Senator Anabel Fernandez Sagasti was quoted saying in a tweet.