May closed with the entry to the AFIP, through its three major sources of resources: DGI, Customs and Anses, $1,551,370 million (AFIP)
May closed with the entry to the AFIP, through its three major sources of resources: DGI, Customs and Anses, $1,551,370 million, showing increases of 79.9% in nominal values and 13.9% in real terms compared to a year earlier, and accumulated a cycle of 21 consecutive months with a year-on-year rise above the inflation rate. “It was mainly driven by the performance of the Income Tax, which rose 102.6% year-on-year and taxes associated with Social Security 75.8%,” reported the Ministry of Economy.
Tax collection thus continued to show a good performance despite the clear slowdown in economic activity, based on the fact that “the stocks encourage the idea that acquiring imported consumer goods is an opportunity, especially taking into account the expectations of change in macroeconomic regime and/or shock devaluation”, warned Analytica. And added the consultant led by economist Ricardo Delgado: “high inflation transforms any non-perishable good into an instrument to transfer wealth over time. Also, silver burns; better use it”. In this way, the delicate macroeconomic scenario becomes an ally of the AFIP, although a breaking point is expected in the short term.
Tax collection thus continued to perform well despite the clear slowdown in economic activity
Interestingly, this phenomenon has contributed to raise the Consumer Confidence Index of the Center for Research in Finance of the Torcuato Di Tella University, because it caused a notable rebound, even at singularly low levels, in the purchase expectations of durable goods, mainly real estate and automobiles.
Precisely, 0Km vehicle registrations closed May with a rebound of close to 10% in the month and 50% in one year -although in this case favored by a strong circumstantial drop in the same month of 2021-, a reflection of the intention of buyers to preserve the value of your savings, particularly in foreign currency.
In addition, income from withholdings on exports despite the advancement of the rate of settlements in the first months of the year, due to the firmness of the international prices of the raw materials produced by Argentina. According to Ciara-CEC, foreign currency income from agriculture grew 33% year-on-year in May, totaling USD 4,231 million, a historical maximum for a single month. So far in 2022, it exceeded USD 15,000 million and was a decisive factor both for the accumulation of Central Bank reserves and for the tax resources that entered Customs.
While the reopening of joint ventures in large unions that are characterized by registering the highest average salaries in the market also contributed to sustaining the good performance of the income received by the National Social Security Administration (Anses), they rose 75.8% in one year.
In any case, the scenario continues to lack solidity, due to the severe supply difficulties observed in various provinces, due to the shortage of diesel to meet the demand of the extensive truck network that moves throughout the country, particularly in the central and northern provinces, in some cases, and the restrictions on the flow of imported inputs to feed the production chains in various industries, due to the notorious foreign exchange stress registered by the Central Bank of the Argentine Republic.
Inflation once again exceeds official forecasts: in May prices rose 5% and the Government remains on alertImports reached a historical record in May but the lack of dollars for companies also worsenedMission almost impossible: the BCRA will have to buy in June USD 160 million per day to meet the goal with the FMIA Contrary to what was agreed with the IMF, the Government expanded the 2022 Budget by more than $73.6 billion