The tax collection amounted to 2.3 trillion pesos in March, a figure that implies an increase of 88.3% compared to the same month last year, driven by taxes associated with the domestic market and employment, which registered year-on-year variations above the average , as opposed to those linked to foreign trade, according to the Federal Administration of Public Revenues (AFIP). Still, in real terms, this translates to a 7.2% decline in March.
The taxes that registered a higher-than-average variation were: Personal Assets (+166.83%), Internal Co-participants (+147.94%), Credits and Debits in Account. Cte. (+122.14%), VAT (+120.56%), Social Security System (+113.03%), Other partners (+101.12%) and Profits (+93.65%).
“As can be seen, both the taxes applied on domestic activity and the social security contributory sources present year-on-year variations much higher than the average collection for the quarter,” said the tax agency.
On the other hand, income linked to foreign trade showed a strong recoil -Export Duties (-64.62%) and Import Duties and Statistical Rate (+71.41%)- compared to March 2022, due to lower volumes declared in the Foreign Sales Affidavits (DJVE) corresponding mainly to to wheat and soybean derivatives, due to the effect of the drought and the end of the Export Increase Program -or soybean dollar- which generated an advance in exports that are usually liquidated in these months.
“If customs resources were excluded from the analysis (which include the taxes on Export Duties, Import Duties, Statistical Rate and the perceptions made in Customs of VAT, Profits, Domestic and Fuel), the collection of March would have grown by 121, 1% year-on-year”, affirmed the AFIP, when highlighting the effect caused by the decrease in foreign trade on tax collection.
In March, tax collection fell by 7.2%
what taxes grew
In that sense, the AFIP He highlighted that the taxes linked to the national production of goods and services for the domestic market and those linked to formal employment grew “above the price variation of the period”, which “allows us to presume that the economic activity aimed at domestic absorption It’s still performing well.”
promptly, within VAT and Earnings, detailed that the subheadings of these taxes collected in the internal activity (VAT Tax and Tax Gains), increased by 157.4% and 100.9%, respectively.
“VAT together with the evolution of Credits and Debits in Account. Cte. (+122.14%) realize that internal activity remains at relatively high levels,” said the organization led by Carlos Castagneto, in its March collection report.
“As a summary, if taxes are broken down according to the origin of the collection, tax resources grew by 124.7% in March, followed by those originating from the Social Security System, with 113%, and finally, the customs officers, with an increase of 17.2% year-on-year“
When analyzing the performance of disaggregated revenues in the first quarter of 2023, those obtained by DGI increased 115.2% yoy, Social Security resources did so by 107.1% and those of DGA and 21.4%; while in absolute terms, $6.7 trillion entered in this period, a variation of 88% compared to the same quarter of 2022.
“This disparate performance is correlated with the fact that if all taxes received from foreign trade operations were excluded (both the Export and Import Duties and the statistical rate, as well as the perceptions of VAT, Profits, Fuels and Internal) collection for the January-March period would have grown by 112.7% year-on-year,” the agency concluded.
