Massa announces VAT refunds and raffles to boost Argentina’s economy

Massa announces VAT refunds and raffles to boost Argentina’s economy

Massa gave no details as to how the rewards program would be financed

Argentina’s Economy Minister and presidential candidate Sergio Massa Thursday announced a refund of the VAT paid on basic food basket items for 9 million workers. In a move to discourage unregistered transactions, he is willing to raffle cars and household appliances for retailers and customers, it was explained.

The measure was already implemented in the 1990s under then-Economy Minister Domingo Cavallo. Massa’s measure seeks to increase the purchasing power of senior citizens, people self-employed, and other registered workers.

“We have arranged a VAT refund program, of 21% VAT, of the total of the basic basket of Argentina for the 9 million workers who in Argentina earn salaries of up to AR$ 708,000,” Massa said.

“We continue with the refund to the 7 million retirees and pensioners of the Social Security System of the Argentine Republic. We have also incorporated to the benefit the 2.3 million single-taxpayers who have no other income, that is to say, who are pure single-taxpayers, regardless of the category of their contribution, also to this benefit. And we have also consolidated the Universal Child Allowance as part of the beneficiaries of this program. Likewise, the 440 thousand domestic workers will also be included in this benefit,” he added.

Massa also said that those who receive “the Universal Child Allowance” were eligible for this program. “Likewise, the 440,000 female and male workers in private homes will also be included in this benefit,” the minister also pointed out.

Massa made these remarks during an appearance in La Rioja. He announced that a system of raffles for brand-new cars, motorcycles, and household appliances will be announced for traders and buyers who use debit cards.

“So that no merchant plays the rogue, we are going to establish a raffle system. We are going to raffle cars, motorcycles, and household appliances; for those who make purchases with the card and for the retailer who puts the posnet,” the minister elaborated.

According to Buenos Aires’ El Cronista, the measure will be announced next Monday by the AFIP tax bureau. The Economy Ministry gave no details as to how the rewards program would be financed.

The “LoterIVA” mechanism created in 1990 by then Minister Cavallo encouraged taxpayers to demand invoices in stores to participate in sweepstakes. This scheme was in force until 1998. Although it was not a great success, later versions were launched with changes in the prizes and in the eligibility requirements in 2009 under then-President Cristina Fernández de Kirchner.

Massa also said Thursday that the VAT return benefit would continue through 2024 for up to AR$ 23,000.

As per the new initiative, refunds are to be credited to the beneficiary’s account 48 hours after purchases with debit cards of fruits, vegetables, meat, personal hygiene products, and household basket products. The extension of the program will become effective on the date of the decree, once it is published in the Official Gazette.

 

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El Ministro de Economía y candidato a Presidente

Sergio Massa anunció el sorteo de autos, motos y electrodomésticos para consumidores y comerciantes “vamos a establecer un sistema de sorteo. Para los que hacen las compras con la tarjeta y para los comerciantes” pic.twitter.com/yEhSN3qXro

— Daniel Diaz Muñoz (@danieldiazz) September 14, 2023