The one-time levy will apply to about 12,000 of the nation’s richest residents and fund medical provides and help for companies.

Argentina’s Senate has permitted a wealth tax to assist the federal government fund COVID-19 measures, together with buying well being provides and providing financial aid to struggling companies.

The one-time levy, handed late on Friday with 42 votes in favour and 26 towards, will apply to about 12,000 of the nation’s richest residents.

President Alberto Fernandez has stated he hopes the measure – additionally dubbed a “millionaire’s tax” – would assist Argentina elevate about $3.7bn amid a years-long financial downturn worsened by the COVID-19 pandemic.

“This is a unique, one-time contribution,” stated Senator Carlos Caserio, a member of the committee liable for the invoice, in line with an announcement on the Senate’s web site, Bloomberg reported on Saturday.

“We’re coming out of this pandemic like countries come out of world wars, with thousands of dead and devastated economies,” Caserio stated.

Argentina has reported greater than 1.45 million instances of COVID-19 because the begin of the pandemic, in line with Johns Hopkins College’s tally, in addition to greater than 39,500 deaths linked to the virus.

 

The regulation applies a tax of at the least 2 % on individuals with greater than $2.45m in property, Reuters reported.

The funds shall be allotted to purchase medical tools and provides, help small and medium-sized companies, help college students and social programmes, and fund pure gasoline initiatives.

“The #AporteSolidario is extraordinary because the circumstances are extraordinary,” governing get together Senator Anabel Fernandez Sagasti wrote on Twitter.

“We must find points of connection between those who have the most to contribute and those who are in need.”

The measure, which earlier handed within the nation’s decrease Chamber of Deputies, drew criticism from Argentina’s extra conservative opposition legislators.

Daniel Pelegrina, president of the Argentine Rural Society, warned that proponents of the laws need “to present it as a contribution of the richest, but we know what happens with all those unique taxes – they stay forever”.



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