Argentine Senate gives approval for wage tax cut measure

BUENOS AIRES: The Argentine Senate gave final legislative approval to a wage tax cut to benefit more than one million workers hard hit by recession and high inflation, and was expected to be swiftly signed into law by Peronist President Alberto Fernandez.

The lower house approved the government-backed tax cut last month. Argentina is trying to end a three-year recession that has been exacerbated by the coronavirus pandemic and double-digit inflation that is particularly punishing for the poor.

There were 66 Senate votes in favor, none against and one abstention.

Workers who earn up to 150,000 pesos per month ($1,624) will be exempt from paying income tax, under the measure.

The change will benefit 1.27 million people, the government says.

The left-leaning Peronist coalition hopes to gain favor with voters ahead of October congressional elections. The new regulation will be retroactive to January 1 of this year.