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LatinNews Daily - 09 April 2021

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In brief: Argentina raises income tax threshold

* Argentina’s federal senate has given final approval to a new bill that modifies the Ley de Ganancias legislation on income tax charges. The new bill increases the income threshold after which individuals are charged income tax from Ar$90,135 (US$920) a month to Ar$150,000 a month; and waives the tax for pension pay outs and the thirteenth salary. The initiative was promoted by the ruling Partido Justicialista (PJ, Peronists), which maintains that it should help to alleviate the financial pressure on households and reactivate a national economy that has suffered due to the effects of the coronavirus (Covid-19) pandemic by stimulating domestic consumption. The initiative received cross-party support. But noting that it will have a fiscal cost of some Ar$50bn and that it is unclear how the government intends to make up for this, some opposition legislators have expressed concerns that it will not be conducive to closing Argentina’s large fiscal deficit.