Buenos Aires: Argentina levied a controversial ‘millionaire’s tax’ on medical equipment, supplies, and relief measures for the COVID-19 pandemic on Sunday.
The bill that was passed by 42-26 votes is aimed at the country’s wealthier class. This tax is expected to impact 12,000 citizens with assets over 200 million pesos ($2.5m; £1.8m).
Argentina President Alberto Fernandez announced that people who are rich will need to shell out extra for virus-related medical products and services. “2020 Fiscal Consensus that we signed today speaks of the responsibility we must have to move forward and how we are going to grow,” Fernandez tweeted.
As per the new policy, the wealthier citizens will be taxed 3.5 per cent on assets within Argentina, and an estimated 5.25 per cent on assets abroad.
BBC sources revealed that the Argentina government planned to raise a fund of 300 billion pesos to tackle the COVID-19 pandemic crisis in the country.