According to the Argentine Institute of Fiscal Analysis (IARAF), despite the elimination of the PAIS Tax, national tax collection at the beginning of the year experienced a real year-on-year increase. The Personal Property Tax generated revenues of $47.955 billion, with a decrease of 0.3% in real terms and 20% in nominal terms.
According to ARCA, this improvement is due to the comparison with a lower base, as in January 2024, those with gross salaries below $1,980,000 were exempted from the tax. Additionally, the Value Added Tax (VAT) grew by 87% in nominal terms and 1% in real terms, reaching $5.3 trillion.
The sum of these taxes was equivalent to 270% of what would have been collected by the PAIS Tax in January 2025 had it not been eliminated. On the other hand, the Income Tax increased by 37% in real terms thanks to higher withholdings from employees and retirees.
Regarding the Fuel Tax, it generated $262.914 billion with a growth of 470% in nominal terms and 209% in real terms. However, several taxes reported declines, such as the PAIS Tax, which lost almost 100% of its collection after it ceased to apply in December 2024.
In the realm of Social Security, a nominal increase of 159.4% was recorded, reaching $4.3 trillion, representing a growth of 29% compared to January 2024. It is important to highlight that January was the first month without considering the income generated by the PAIS Tax.
According to economist Nadín Argañaraz, the surplus in collection during January largely compensated for the loss associated with the PAIS Tax, financing the reduction of other taxes. Contributions to Social Security were the most significant contributors, with an increase of 178%, followed by Income Tax, check tax, liquid fuels, and VAT.
January's collection reflects a real increase of 5.6% compared to the same period of the previous year, surpassing expectations that predicted a slight decline. This improvement is key to the government's strategy to maintain the balance of public accounts, as public revenues increased more than the cost of living.
