The Argentinian congress has approved a one-off levy on the country’s rich.
Senators passed the “solidarity and extraordinary contribution law” on 5 December 2020, which had already been greenlighted by the lower house, with 42 votes in favour and 26 against, according to the senate’s official Twitter account.
The government intends to raise $3.5bn (£2.5bn, €2.8bn) to support the economic pressure brought by the covid-19 pandemic.
It is a move that has been considered by other countries, including the UK.
Dividing up the pie
According to newswire Reuters, the tax will be of at least 2% for individuals with assets of more than ARS200m (£1.7m, $2.3m, €1.9m).
The UK’s BBC estimates this will impact around 12,000 people in the country, and that rates will be set at around 3.5% on wealth located in Argentina and up to 5.25% on assets held abroad.
Around 20% of the revenue from the wealth tax will be used to cover medical supplies and equipment costs; another 20% will go towards economic relief for small- and medium-sized businesses; 20% to scholarships and 15% to social developments.
The remaining quarter will be given to natural gas ventures.
