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Economy Minister Caputo Announces Cut In PAIS Import Tariff

ARGENTINA
  • Economy Minister Caputo has announced that the government will cut the PAIS import tax from 17.5% to 7.5%, starting September 2, in an effort to reduce inflationary pressure.
  • President Milei initially increased the tax in December to boost tax revenues, but the focus is turning back to inflation as the government continues to cut back on subsidies, including on home utilities and public transport. In July, monthly CPI inflation eased to 4.0% m/m, from 4.6%, bringing the annual rate down slightly to 263% y/y.
  • So far this year, the government has collected around $4.5bn in revenues from the PAIS tariff, roughly 6% of total tax revenues. Government tax revenue data for August are due to be published on September 2.

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