Legislator Pablo Donati the local head of the Republicanos Unidos (United Republicans) party has presented a bill in the Buenos Aires Legislature aimed at modifying the current Tax Law in order to reduce the tax burden on essential goods and medical services without undermining state finances.
The initiative proposes the elimination of the Gross Income Tax rate on basic foods such as dairy products, fruits, vegetables, meats, fish, baked goods, and grocery items, as well as integrated medical services for consultation, diagnosis, and treatment.
These exemptions would be compensated by an increase in taxes on gambling and betting, both in person and online. The current rate would rise from 12% to 15% for slot machines and casinos, and from 6% to 15% for online gaming.
In the justification for the bill the lawmaker and his party argued that the new tax scheme “prioritizes those who need it most and coherently taxes non-essential activities that generate negative externalities, such as gambling addiction. In this sense, the project moves towards a more equitable tax system that is selective and compatible with principles of freedom, individual responsibility, and minimal state interference in citizens’ daily economic lives.”
According to the bill the initiative fits into a much wider legislative trend which alleviates the burden on essential goods while increasing taxes on “non-priority or socially problematic activities.” As well as citing certain jurisdictions in Argentina the text states that “Colombia, the United States, and Peru have strengthened taxation on gambling to finance social programs.” If approved it would make Buenos Aires “one of the first jurisdictions in the country to jointly apply a tax relief scheme for food and health, compensated by a focused tax increase on gambling.”
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Legislator Pablo Donati the local head of the Republicanos Unidos (United Republicans) party has presented a bill in the Buenos Aires Legislature aimed at modifying the current Tax Law in order to reduce the tax burden on essential goods and medical services without undermining state finances. The initiative proposes the elimination of the Gross Income…
The post Lawmaker proposes tax hike on gambling for City of Buenos Aires appeared first on G3 Newswire.