A wealth tax with a one-off levy on those with over $2.45 million in assets: Argentina’s Congress is hoping this will help it collect up to $3.7 billion to fund much-needed medical supplies to go towards the fight against COVID-19.
The tax, passed through the “solidarity and extraordinary contribution law” that had already cleared the country’s lower house of parliament, was passed by the Senate and stipulates a one-off tax of at least 2 per cent on individuals with assets over 200 million pesos ($2.45 million).
“The #AporteSolidario is extraordinary because the circumstances are extraordinary,” said ruling party Senator Anabel Fernandez Sagasti on Twitter. “We must find points of connection between those who have the most to contribute and those who are in need,” she added.
Approximately 12,000 Argentines could be targeted by the tax, which could increase its tariff by up to 5.25 per cent for ultra-wealthy citizens with offshore assets.
The move comes as Argentina faces its third straight year of recession, with economic activity set to decline by 12 per cent this year.
In August, a group called ‘Millionaires for Humanity’ comprising 80 millionaires called for greater taxes on the wealthy to help alleviate the impact of the COVID-19 crisis.
