BUENOS AIRES (Reuters) – Argentina’s government will raise the floor for income taxes in January, the country’s Economy Minister Sergio Massa said on Thursday, amid union demands to ease the burden on workers.
“With this tax relief, in 2023, no worker who earns less than 404,062 pesos (about $2,378 monthly) will pay the tax,” Massa said in a tweet.
The minister did not disclose the fiscal cost of the decision, which he said is set to benefit some 312,864 workers.
The previous floor stood at 330,000 pesos ($1,942.32).
With this update, Massa said fewer than 600,000 wage earners in the country will pay the tax, less than 10% of the country’s total workforce.
Higher-income workers will also get some tax relief in the form of personal deductions and tax scale brackets, he added.
The decision is likely to be welcomed at a time when inflation is forecast at around 100% for 2022, cutting into Argentines’ purchasing power.
($1 = 169.90 pesos)
(Reporting by Lucila Sigal; Writing by Valentine Hilaire; Editing by Sarah Morland and Frances Kerry)
