Ruling party accepts union demand to extend income exemption

On the eve of the start of the debate on the income tax amendment project, the President of the Chamber of Deputies, Sergio Massa, received this Tuesday the request of main leaders of the CGT to exempt various additional salaries from payment of the tribute. The ruling party would agree to include the overtime, bonus, amount allocated to daycare and daily allowance.

The meeting brought together about fifteen leaders of different unions led by Carlos acuna (Gas stations), Hector Daer (Health and Mario calegari (UTA).

The ruling party was represented by Massa and the deputies Carlos Heller and Vanesa Siley, Chairs of the budget and labor legislation committees, respectively. Both will convene the plenary session of the committees for next week with a series of briefings in which officials from the Ministry of the Economy and AFIP will participate, among others.

“Currently, 25% of employees pay income tax; with this tax, this proportion will drop to 10%. This is an important step and we will support this project, ”Daer stressed. “We’re coming back to 2015 numbers after four years of labor setbacks,” Siley confirmed. At the meeting, union leaders presented a list of proposals to be included among tax exemptions, including overtime, Christmas bonus, production bonus, child care costs, education costs and the deduction for partner.

“There are a lot of demands, but those that we will surely include in the project are the overtime, the daily allowances, the payment of the daycare and the Christmas bonus”, anticipated a leading official source, who has admitted that with these changes, the fiscal impact of the initiative will exceed $ 40,000 million, as originally planned. “We must discuss it with the Economy”, they indicate to the lower house.

“We are generally in agreement with the CGT’s proposals; they are part of the policy of Alberto Fernández ”, underlined MP Heller.

In general, the initiative prepared by Massa, which has the backing of Casa Rosada, proposes to raise the floor, on the basis of a special deduction, to exempt those whose gross monthly salary does not exceed $ 150,000. income tax ($ 124,000 report). This figure would be updated each year based on the change in the Ripte index. Likewise, the initiative plans to grant the executive branch the power to adjust deductions for those with gross salaries between $ 150,000 and $ 173,000.

In the case of retirement the criterion put in place in 2017 is met, which provides for the floor to be mobile and equivalent to a certain number of times the minimum amount. In this project, the benchmark goes from 6 to 8 minimum retirements, so in March that will bring in more than $ 160,000. In short, the law would directly provide a benefit to the group of dependent workers today covered by the tax and whose net salary is less than $ 124,500. Likewise, it will grant the executive power the power to order a tax reduction for salaries between this amount and $ 173,000 gross ($ 143,590 net): the objective, they maintain in the environment of Massa, is to avoid sudden jumps and to lighten the weight of the tax burden for this sector of employees. For salaries above $ 173,000, no change is expected.

The opposition has anticipated its support for the project, although it will propose changes. The Together for Change block presented a project, prepared by the deputies Alejandro Cacace, Soledad Carrizo and Federico Zamarbide, in which the self-employed will be included among the beneficiaries of the increase in the tax floor. A new updating mechanism is also established which considers inflation for the amounts of the special deduction and the scale levels, replacing the Ripte.

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