Argentina expands tax incentives for undeclared savings to encourage construction

New Argentina Economy Minister Sergio Massa announced on Monday the extension of a scheme offering tax incentives to Argentines who use their undeclared savings to invest in construction projects, as part of the government's efforts to boost industry and employment.

The law extends a law passed last year and sets tax rates of between 5% and 20% on newly declared funds invested in construction, depending on how soon the funds are declared. "The first objective is to turn idle savings, which are often not declared to the treasury, into investment and jobs," Massa said at a ceremony in Buenos Aires, describing construction as the "mother of industries". The plan also offers state benefits to workers formally employed in the construction sector. Massa, who was sworn in at the beginning of the month, said he hoped the plan would increase the number of Argentines employed in construction from 430,000 to 450,000 during his one-year term. President Alberto Fernandez's government is trying to revive Latin America's third-largest economy, which is suffering from rising poverty and an inflation rate that could end the year around 90%. Argentina's economy is projected to grow by 3.4% in 2022 after recovering by 10.3% in 2021, according to analysts consulted by the central bank. The Federal Administration of Public Revenues (AFIP) and the ministry will provide details on the terms of the plan in the coming days.   Source: investing.com