![[Argentina] ‘Millionaire’s tax’ will pay for COVID relief measures](http://gpa.net/cdn/shop/articles/bigstock-Fabric-Texture-Flag-Of-Argenti-365221891_a6ec9ad7-7ea3-4d23-8131-edc324cf4aa6_1200x.jpg?v=1607516422)
A new tax on Argentina’s wealthiest people - to pay for medical supplies and relief measures needed to manage the ongoing COVID-19 pandemic - will go forward. On December 4, senators passed the one-off levy, which has been dubbed the "millionaire's tax", by 42 votes to 26. Anyone with assets valued above 200 million pesos ($2.5m or £1.8m) will be required to pay. Around 12,000 people meet the threshold, BBC News reports.
Argentina reportedly has close to 1.5 million coronavirus infections and almost 40,000 recorded deaths. The country has been hit hard by the pandemic, it became the fifth worldwide to report one million confirmed cases in October despite only having a population of about 45 million. At the time it was the smallest nation to surpass the figure. (Link via original reporting)
Argentina has been in recession since 2018 and lockdown measures have further impacted an economy already struggling with high poverty levels, unemployment and massive government debt. Those with qualifying levels of assets will pay a progressive rate of up to 3.5 per cent on wealth in Argentina and up to 5.25 per cent on wealth held outside the country.
According to AFP news agency reports, 20 per cent of the money raised will go to medical supplies, 20 per cent to relief for small and medium-sized businesses, 20 per cent to scholarships for students and 15 per cent to social developments, with the remaining 25 per cent going to natural gas ventures.
Centre-left President Alberto Fernandez's government hopes the one-off levy will raise 300 billion pesos but opposition groups are afraid it will discourage foreign investors and have raised concerns that it will not be a one-time tax. Centre-right party Juntos por el Cambio reportedly described the levy as "confiscatory".
A new tax on Argentina’s wealthiest people - to pay for medical supplies and relief measures needed to manage the ongoing COVID-19 pandemic - will go forward. On December 4, senators passed the one-off levy, which has been dubbed the "millionaire's tax", by 42 votes to 26. Anyone with assets valued above 200 million pesos ($2.5m or £1.8m) will be required to pay. Around 12,000 people meet the threshold, BBC News reports.
Argentina reportedly has close to 1.5 million coronavirus infections and almost 40,000 recorded deaths. The country has been hit hard by the pandemic, it became the fifth worldwide to report one million confirmed cases in October despite only having a population of about 45 million. At the time it was the smallest nation to surpass the figure. (Link via original reporting)
Argentina has been in recession since 2018 and lockdown measures have further impacted an economy already struggling with high poverty levels, unemployment and massive government debt. Those with qualifying levels of assets will pay a progressive rate of up to 3.5 per cent on wealth in Argentina and up to 5.25 per cent on wealth held outside the country.
According to AFP news agency reports, 20 per cent of the money raised will go to medical supplies, 20 per cent to relief for small and medium-sized businesses, 20 per cent to scholarships for students and 15 per cent to social developments, with the remaining 25 per cent going to natural gas ventures.
Centre-left President Alberto Fernandez's government hopes the one-off levy will raise 300 billion pesos but opposition groups are afraid it will discourage foreign investors and have raised concerns that it will not be a one-time tax. Centre-right party Juntos por el Cambio reportedly described the levy as "confiscatory".
