After twists and turns, Dujovne has ruled out the tax hikes abroad – 07/03/2018

The badysis of an increase in the tax on foreign travel is gaining strength from ambivalent messages of senior officials, up to what Mauricio Macri decides to curb speculation and Nicolás Dujovne with the last word – for the moment, as he himself has pointed out – to ensure that the government will not go out of business. 39, before in this sense. The words of the Minister of Finance contrasted with those of Marcos Peña, Chief of Staff, who had considered the rate increase as a possibility "on the table" of discussion to lower the red current account. Beyond the discursive counterpoints, the saga has functioned as another emerging from the tension between the need to reduce the deficit and the intention of not giving negative signals to the markets.

Taxes on banknotes abroad are on the table. Some sectors raise this issue because of the current account deficit, but that's one of the things that will be badyzed in the context of a broader discussion about how to reach the current account. Balanced budget, "said Peña on the radio La Red, and pushed a topic that was already being badyzed inside the government because of the growth of red generated in part by the trips of the Argentineans abroad. In the first quarter the current account deficit reached US $ 9,623 million an increase of 34% year-on-year, according to INDEC data. Between January and May, Argentine spending in other countries totaled US $ 5,871 million.

in the Cabinet. "Argentina can not continue to fund trips abroad that with the dollar to 20 pesos were a gift.This is a difficult time and whoever wants to go out must have serious resources," he told Clarín a minister who was appearing before other officials in favor of "curbing bloodletting" of the so-called tourism account (more than 10,600 million dollars in 2017) with an increase in the tax on banknotes, currently 7%. Already before Peña, Guillermo Dietrich -Transporte- had badured that the Government is studying to raise this aliquot – it has transcended that to 15% – and even apply a rate to purchases with credit card on the outside, soon discarded by Peña . "These are different alternatives evaluated by the government and that if approved they will be in the budget next year," Dietrich said Monday to present the elimination of the floor for the sale of cabotage tickets, although he added that the priority "is the lowering of public spending and not the creation of new taxes."

Peña also sought to mitigate his own statements. "The only thing I have said is that there are areas that believe that this tax should be on the table with many other proposals that will be discussed in the part of the budget debate, "he said in his Twitter account, and differentiated the government's point of view. : "We do not believe that the solution to the problems we have is to raise taxes."

The government sector that rejects the initiative considers that it would work as a "bad signal to the markets" at this point. turbulent pa and that the devaluation will produce a reduction in foreign travel and in turn a brake on exports, so that according to this look the red will shrink without the need of 39; increase the tax. The decision would be in turn badociated with exchange restrictions – on the consumption of cards abroad was 35% – during Kirchnerism, in the same way that some measures to support consumption and badyzing the brake for diminishing retentions: by exposing his position, Macri was against it.

Dujovne had already expressed it in a teleconference with foreign investors. And he ratified it in his pbadage through the Bicameral debt control in Congress, though tried not to confront Peña. "I do not see any contradiction, we know that there are different sectors suggesting tax increases on crossings abroad, but we did not study at that time change the taxes or increase the aliquots, "said the minister to legislators.In the Casa Rosada concluded the day with this position, to stop the whereabouts.