Argentina’s Senate passes ‘millionaire’s tax’ for COVID-19 relief | Latin America


The one-time levy will apply to about 12,000 of the nation’s richest residents and fund medical provides and help for companies.

Argentina’s Senate has authorized a wealth tax to assist the federal government fund COVID-19 measures, together with buying well being provides and providing financial relief to struggling companies.

The one-time levy, handed late on Friday with 42 votes in favour and 26 towards, will apply to about 12,000 of the nation’s richest residents.

President Alberto Fernandez has stated he hopes the measure – additionally dubbed a “millionaire’s tax” – would assist Argentina elevate about $3.7bn amid a years-long financial downturn worsened by the COVID-19 pandemic.

“This can be a distinctive, one-time contribution,” stated Senator Carlos Caserio, a member of the committee accountable for the invoice, based on an announcement on the Senate’s web site, Bloomberg reported on Saturday.

“We’re popping out of this pandemic like international locations come out of world wars, with 1000’s of lifeless and devastated economies,” Caserio stated.

Argentina has reported greater than 1.45 million instances of COVID-19 because the begin of the pandemic, based on Johns Hopkins College’s tally, in addition to greater than 39,500 deaths linked to the virus.

 

The legislation applies a tax of no less than 2 % on folks with greater than $2.45m in belongings, Reuters reported.

The funds will likely be allotted to purchase medical gear and provides, help small and medium-sized companies, assist college students and social programmes, and fund pure gasoline initiatives.

“The #AporteSolidario is extraordinary as a result of the circumstances are extraordinary,” governing get together Senator Anabel Fernandez Sagasti wrote on Twitter.

“We should discover factors of connection between those that have essentially the most to contribute and those that are in want.”

The measure, which earlier handed within the nation’s decrease Chamber of Deputies, drew criticism from Argentina’s extra conservative opposition legislators.

Daniel Pelegrina, president of the Argentine Rural Society, warned that proponents of the laws need “to current it as a contribution of the richest, however we all know what occurs with all these distinctive taxes – they keep eternally”.





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