The Chamber of Deputies of Argentina approved with 133 votes in favor and 115 against, the wealth tax called Extraordinary Solidarity Contribution of Great Fortunes, so now the proposal will go to the Senate to be voted on.
The objective of the proposal to form the Frente de Todos is to raise 307,000 million pesos, equivalent to 1.1 % of GDP, which would affect some 9,298 people in the South American country, according to data from the Federal Administration of Public Revenues (AFIP).
After a long debate of about 13 hours, the deputies approved the measure that will consist of the collection in a single time of a progressive tax of 2 % on assets exceeding 200 million Argentine pesos.
Said rate will rise to 2.25 % in the event that the fortunes are between 300 and 400 million pesos, to 2.5 % between 400 and 600 million, and to 2.75 % in the range of 600 to 800 million of pesos.
Likewise, the tax will rise to 3 % when assets range between 800 and 1,500 million pesos, to 3.25 % for fortunes between 1,500 million and 3,000 million pesos. From that figure, the tax will be 3.5 %.
The collection of said tribute will be used for the contingency of the Covid-19 health emergency, the promotion of SMEs, development programs, scholarships to the comprehensive “Progresar” scholarship program, natural gas exploration and development programs, through the state owned Ieasa.