COVID: Argentina imposes new tax on wealthiest

A one-off tax on Argentina’s richest people comes into effect to help pay for medical supplies and relief for businesses struggling due to Covid-19.

Those with assets of more than 2.3 million dollars will have to pay about 3 percent on assets declared within the country and over 5 percent on assets held abroad. It will apply to around 12,000 people.

The government hopes to raise around 3 billion dollars. The money will also help fund scholarships and social aid.

Senators passed the one-off levy – dubbed the “millionaires’ tax” – by 42 votes to 26 in December.

The measure, brought in by centre-left President Alberto Fernández, has been criticized by the opposition, which described it as “confiscatory.”

But the country has been badly hit by the pandemic, which has deepened already high rates of poverty. Almost 40 percent of the country’s population lives under the poverty line, while the unemployment rate sits at 11 percent.


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