Between April 1 and 19, national tax collection fell by 13% in real terms, according to the latest IARAF report.
Between April 1 and 19, national tax collection fell 13% in real terms, and the provincial collection decreased by 6.5% real year-on-year, according to a survey by Iaraf. “In both cases the real drop observed in the first week of the month was moderated,” interpreted the institute that permanently analyzes the fiscal situation.
The main components of the National collection, VAT and Profits accumulate real losses of 24.8% and 14.6% respectively, while the main provincial tax showed a slight fall of 1.5% in real terms.
“The evolution of tax collection, both national and provincial, is always important. But in the current situation, it becomes even more relevant, given the large drop in income expected due to the effects of compulsory isolation,” he explained.
The drop in income can considerably increase both the national and provincial fiscal deficits. Given this, Iaraf decided to incorporate into his regular monitoring of economic and fiscal variables, that of the weekly evolution of the collection of the main taxes in force in our country at different levels of government.
With this objective, we analyze how the collection has been performing up to the last available data (4/19/2020).
The taxes are monitored are VAT, Earnings, Personal Property and Fuel Tax, nationwide; and IIBB, Seals and Real Estate at the provincial level. This group of taxes represents more than 85% of the consolidated collection of the nation and provinces in our country.
Taking the various tributes considered, It can be seen that except for one of them, all presented nominal year-on-year growth in the periods considered in April.. However, when cumulative inflation is taken into account, half of the instruments show real falls.
The main components of the National collection, VAT and Profits accumulate real losses of 24.8% and 14.6% respectively, while the main provincial tax, Gross Income, shows a fall of 1.5% in real terms.
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