Argentina has authorized a new tax that allows people with large fortunes to pay for medical equipment and medical support during the new coronavirus pandemic, the BBC reveals this Saturday. The single tax was approved by 42 votes in favor and 26 against, last Friday, and was dubbed the “millionaire tax”.
Anyone who has a fortune of more than 200 million pesos (two million euros) must pay this tax. According to the Argentine data, about 12 thousand people have fortunes in excess of this amount.
As of today, Argentina has recorded nearly 1.5 million infections and 40,000 deaths due to the virus. This was the fifth country to reach the milestone of one million cases worldwide, in the past month of another. With a population of 45 million people across the country, Argentina has become the smallest nation to reach the one million infected mark.
The restrictions applied by the government, with the Argentina became known for the longest quarantine in the world, hurt the weak economy that was already struggling with high unemployment, high levels and poverty and huge public debt. The blocking measures implemented by the country worsened the situation in the country that entered a recession in 2018.
One of the authors of this law maintained that the measure would only affect 0.8% of Argentine taxpayers. Those targeted by this “millionaires tax” will pay a progressive tax of up to 3.5% on Argentina’s wealth.
It is already known that 20% of the money collected will go to medical equipment, 20% to support small and medium-sized companies, 20% to scholarships for students, 15% to social development and 25% to natural gas projects.
President Alberto Fernandez hopes to raise 300 billion pesos (three billion euros). However, the government’s opposition group fears that this tax will alienate foreign investors from the country, and may not be a single tax as put forward by the government.
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