Economy Goodbye to the Pais tax (impuesto pais)?

[nomad king]

Many colleagues at my workplace are talking about this news, and apparently, it's one of the first taxes that Milei plans to eliminate.

Javier Milei: what taxes will he eliminate​

Milei then communicated what the roadmap will be: "The first tax we have in mind is the PAIS Tax, then the withholdings and then the bank debits and credits. I have repeatedly refused to share these taxes, because if we share them we will not pay them. I can get more," he concluded.

Javier Milei habló del dólar blue y detalló la hoja de ruta para eliminar el cepo y el impuesto PAIS

El Presidente le restó importancia a la suba del dólar blue y calculó su dólar de equilibrio.

www.ambito.com

 

[Melibaires]

He's already doing it, which is good news especially for the locals who were waiting for this.

Dólar: Javier Milei confirmó que retrotraerá 10 puntos el Impuesto PAIS

El Presidente ratificó que el extra de 17,5% que se aplica a las operaciones en dólares en el mercado oficial bajará a 7,5%. Estimó que se hará efectivo en agosto.

www.ambito.com

 

[Larry]

But read the first article. Milei said he isn't scared of the blue dollar. He has probably changed his mind about that. Blue dollar is exploding.

 

[meghann]

The president has once again addressed the “Impuesto País” (Country Tax) and confirmed that it will end in December.

 

[Uncle Wong]

The less taxes the better!

 

[Piranha]

Economy Minister Luis Caputo announces government will lower levy known as 'PAIS tax' from 17.5% to 7.5%.
This hopefully will cause people to spend money again.

Milei lowers key import tariff to cool inflation

Economy Minister Luis Caputo announces government will lower levy known as 'PAIS tax' from 17.5% to 7.5%.

www.batimes.com.ar

 

[MikeYoung]

Wait, but according to this article, it's just going back down to the rate it was before Milei raised it when he took over in December? 🤣

Government to roll back PAIS tax for imports, shipping to pre-Milei levels - Buenos Aires Herald

The reduction from 17.5% to 7.5% will not affect credit or debit card purchases in U.S. dollars

buenosairesherald.com

 

[ezequiel]

Wait, but according to this article, it's just going back down to the rate it was before Milei raised it when he took over in December? 🤣

Government to roll back PAIS tax for imports, shipping to pre-Milei levels - Buenos Aires Herald

The reduction from 17.5% to 7.5% will not affect credit or debit card purchases in U.S. dollars

buenosairesherald.com

Also, from what I've heard from my friends and locals, people think this will lower costs when spending in dollars. Here, many buy courses, games, or streaming platforms in dollars. But don't get too excited because for purchases made in dollars with credit or debit cards, the PAIS tax will still be applied at 30%, plus an extra 30% for the Income or Personal Property tax. This reduction only affects imports, which could have a “double impact” on the Argentine industry: on one hand, it will lower costs, allowing companies to import cheaper raw materials, but on the other hand, importers might use this benefit to bring in finished products that are already produced in Argentina, creating unfair competition. So, they should also implement measures to support national production, which won’t be an easy task... The excitement didn't last long for the locals 🫨

 

[Blockchain]

Things sounds like they are quickly improving for the better there. My friend just told me that Mercado Pago doesn't charge VAT and income tax withholdings for online payments now.

 

[Vince]

Things sounds like they are quickly improving for the better there. My friend just told me that Mercado Pago doesn't charge VAT and income tax withholdings for online payments now.

View attachment 7041

This is great news! Prices should come down on many items now.

 

[Kirsten G]

Milei confirmed that the tax will be completely eliminated in December. It was initially introduced as a temporary measure, but, of course, previous administrations never removed it.

Milei ratificó en la UIA que en diciembre se elimina definitivamente el Impuesto PAIS

El presidente fue el principal orador en el Día de la Industria. Allí, celebró la eliminación de trabas aduaneras que protegen al sector y dijo que para proteger a la industria se le “robó” a otros sectores

www.infobae.com

 

[ranchero]

Here’s how Kicillof is undermining the reduction of the "Impuesto País" by increasing municipal taxes. In the midst of falling consumption, this will inevitably lead to higher prices, driving up inflation. It’s clear to see that this move seems more like a petty attack to prevent Milei's economic policies, such as the reduction of the "Impuesto País," from succeeding.

Distribuidores y autoservicios mayoristas se suman a alerta de los supermercados: el aumento de tasas municipales traerá más inflación

En un comunicado, la cámara que los agrupa señaló que el aumento de alícuotas tributarias de los municipios se produce “en medio de la caída del consumo” y afecta márgenes de ganancias que -alegan- ya no se pueden comprimir

www.infobae.com

 

[greiger]

Now we just need to rely on the goodwill of companies to start lowering their prices, as Toyota has already done with its cars. The sectors most likely to benefit and where we should see price reductions are appliances, cars, and electronics.

Electrodomésticos, autos y tecnología: los rubros que podrían bajar más sus precios tras la reducción del impuesto PAIS

Algunas empresas, como Toyota, por ejemplo, ya anunció una reducción de precios. Algunas marcas de celulares también lo harán. Otras advierten que bajarán los precios pero no inmediatamente. Qué esperan en el Gobierno

www.infobae.com

 

[Digital Nomad]

Things sounds like they are quickly improving for the better there. My friend just told me that Mercado Pago doesn't charge VAT and income tax withholdings for online payments now.

View attachment 7041

I don't think this is really the case with everything. This article says that this only applies to trade-related transactions such as paying for imports. Says not applicable to credit or debit card transactions or purchases Argentine residents make abroad which the PAIS tax on these transactions stays at 30% and they are subject to another 30% in income tax. Crazy. It's no wonder why so many Argentines only deal with cash!

https://buenosairesherald.com/economics/milei-confirms-argentinas-pais-tax-will-end-in-december

 

[Vero]

You can already see the affects of the reduction in PAIS tax.

Prices have dropped in some car models for the first time in 4 years.

 

[BuySellBA]

Next Monday, December 23, 2024, the PAIS Tax will come to an end in Argentina, and the Revenue and Customs Control Agency (ARCA) has established a new regime for the savings and credit card dollar. Although the PAIS Tax will disappear, Javier Milei's government has decided to maintain a 30% surcharge as a withholding for Income Tax.

The new tax scheme presents the following characteristics:

A 30% withholding is maintained on dollar purchase operations for savings and credit card expenses abroad.This withholding will be applied on account of Income Tax and Personal Assets Tax.The value of the savings and credit card dollar will be calculated based on the official dollar price plus the mentioned 30%.

As a result of these changes, a significant reduction in the final price of the credit card dollar is expected:The credit card dollar will go from having a 60% surcharge (which includes the PAIS Tax) to only 30%.This implies a 30% decrease in the final price for consumers.In numerical terms, the credit card dollar will go from $1668 to approximately $1355, as indicated in the query.

The new regime will affect various foreign currency operations:

Purchase of dollars for savings.
Credit and debit card expenses abroad.Digital services such as Netflix and other applications.

It is important to note that these changes will take effect from Monday, December 23, 2024, affecting all consumption made from that date.Although the PAIS Tax will disappear, the government has chosen to maintain a significant tax burden on dollar operations. However, the reduction of the total surcharge from 60% to 30% represents a relief for Argentine consumers and tourists who spend abroad or acquire dollars for savings. This measure seeks to balance the need for tax collection with the objective of reducing the tax burden on foreign currency transactions.