Economy Minister Axel Kicillof (photo: Wikimedia commons)
Economy Minister Axel Kicillof has announced changes in income tax rates.
The modifications announced this afternoon will apply to the lowest brackets —those who earn a gross wage of between $15,000 and $25,000 per month— who will see the income tax rates reduced by at least 18%. This will translate into an increase of 5-6% in the nett salary.
According to Kicillof, “those who earn lower wages will have a greater reduction [in the tax], because we modified the scale.” He exemplified this reduction, explaining that “a married worker, with two children, who earns a gross wage of $20,000 [per month] and currently pays $1,280 in taxes, will now pay $397.” A single worker without children “with a gross wage of $20,000 who currently pays $2,000 [in income tax] will have a reduction of 32% and will pay $1,400.”
Kicillof also pointed out that “it’s not true that the income tax applies to all workers (…) Today, it applies to 11.3% of the total of registered workers.”
The reduction in the income tax threshold has been at the forefront of union demands. The Minister, however, confirmed that the non-taxable threshold remains at $15,000.
Shortly before Kicillof’s conference, the head of the Metal Workers Union (UOM), Antonio Caló, announced a 36-hour strike as wage negotiations stalled. His union is asking for a 32% increase, but employers have refused to give anything more than 24%.
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