Tax collection in May reached one trillion 551,370 million pesos, with a year-on-year growth of 80% and driven mainly by the performance of the Income Tax and the taxes associated with Social Security, reported the Ministry of Economy.
With the level of income reached in May, “a year-on-year expansion in real terms is estimated for the twenty-first consecutive month,” the Treasury Palace said in a statement.
“The taxes that grant progressivity to the system expanded by 102.5% as a whole,” said the portfolio led by Martín Guzmán, after which they remarked that “in particular, the Income Tax, registered a growth of 102.6% to add something more than $434,600 million”.
As for Social Security resources, the rise of 75.8% was driven by salary improvements and the growth of registered employment.
The increase in these resources responds to the growth of Employer Contributions, with $179,008 million and an increase of 75.6%, and the 73.9% increase in Personal Contributions, $121,063 million.
“The taxes with the greatest response to economic activity”, with a rise of 70.1%, “also contributed to explain the growth of national collection”, said Economy.
Within this group are VAT, with $416,664 million and an increase of 69%; the Tax on Credits and Debits, with $92,800 million and an increase of 58.6%; and the tax on Liquid Fuels, with a rise of 51.8% to add $37,500 million.
On the other hand, foreign trade taxes showed a growth of 49.2%.
In the latter case, the main concept that explained the growth was the Import Duties and the statistical rate, which together registered an increase of 71.3% with an income of $45,166 million, in line with the improvement in economic activity.
In turn, Export Duties grew 42.8% to add just over $130,000 million.
Meanwhile, the collection for the so-called Country tax, which is levied on the purchase of dollars to hoard, increased 330% in May, registering revenues of just over $23.6 billion.
The result of May, according to the Treasury Palace, shows a “real expansion of fiscal resources” with respect to previous periods.
With the improvement in May, the first five months of the current year accumulate a tax collection of 6 billion 472,512 million pesos, with an increase of 64.5% compared to the same period in 2021.
Compared to last April, tax revenues for May marked a rise of 15.6%.
In May 2021, tax collection totaled $862,480 million, with an increase of 5.5% compared to the previous month and 72.7% in the year-on-year comparison.
On that occasion, the improvement was driven by taxes related to economic activity, which registered an increase of 62.4%, compared to the same month in 2020.