Total revenues grew 7% in real terms. However, it was the co-participation that drove profits, a situation that will not be repeated to that magnitude. Own resources continued to decline. He is concerned about the increase in delinquencies in assets. They rule out a payment plan for now
The total collection of the Province of Córdoba reached 612,818 million pesos in May, an amount that represented a real increase of seven percent and thus ended a negative streak of eight consecutive months of falls at constant values.
However, the positive result that the public accounts showed had only one explanation: the extraordinary income that the Income Tax contributed and that drove not only the co-participation but also managed to reverse the real decline in the Province’s own collection, which showed a decrease of 18%, always at constant values.
The data reported yesterday by the Executive represent an exception, in a recessive context that shows no signs of reversing in the short term.
In this context, sources consulted by Commerce and Justice They admitted that, if it were not for the exceptional income that Ganancias contributed, the May collection would have continued on its negative path.
Specifically, as this media reported days ago, national resources, as a whole, showed in May an increase of 24% in real terms compared to 2023. Both Profits and the Value Added Tax (VAT) played a leading role among taxes. of national origin. Together, in May 2024 they represented 96% of this type of taxes.
However, in May the high growth of Profits stood out, which contributed close to two out of every three pesos of the total taxes of national origin.
In the fifth month of the year, the resources shared with the provinces showed, in the case of Córdoba, an increase of 19% in real terms.
The disaggregation of national taxes revealed that VAT net of refunds fell at a year-on-year rate of 19% in real terms, while Profit collection showed a real increase of around 82%.
This extraordinary increase was explained, on the one hand, because the presentation and payment of DDJJ balances of companies that close their balance sheets in December expired in May.
On the other hand, another cause was because companies with dollarized assets recorded significant capital gains as a result of the exchange rate devaluation that occurred in December 2023, a situation that implied that they paid more income tax.
In fact, the incidence of co-participation in the total collection of the Province in May represented seven out of every 10 pesos received, when usually the contribution is 60%.
Their own, on the decline
Regarding the own collection by Revenue, income from provincial taxes linked to economic activity, such as Gross Income (IIBB) and Stamps, fell seven percent and 17%, respectively, year-on-year, always in real terms.
The main tax due to its impact was IIBB, which explained 77% of its own collection, and in May it showed a real year-on-year drop of seven percent.
The generalized recession and inflation that is beginning to subside, led to a decidedly negative performance of that obligation, which is key to provincial resources.
In the case of Stamps, which has a seven percent share in its own collection, there was a 17% drop in real terms, always in relation to a year ago.
For their part, the so-called property taxes, with a nine percent share in provincial collection, fell approximately 65% in real terms compared to May 2023.
In the case of Real Estate, the real drop was 71% year-on-year.
Meanwhile, the Automotive tax presented a decrease of 16% at constant values, compared to the same month in 2023.
“There is an impact of the crisis that in May was only reversed by the exceptional improvement in Profits, but the projection is that the drop in collection will return in June and will continue as long as there is no recovery in the economy,” he revealed. to this medium a source of Finance.
In addition to the impact generated by the economic crisis on IIBB or Stamps, there is now also a reduction in the collection of property taxes, which, although they have a minor impact on total income, are important at a time when every peso adds up.
Specifically, as the informant explained, although many taxpayers chose to pay the single fee based on the fact that this year it was decided to adjust monthly salaries to those who paid monthly, those taxpayers who chose to rate their payments began to fall behind in complying with The duty.
“The issue is that, unlike services that directly cut you off if you do not pay, people choose not to pay taxes while waiting for a future payment plan,” the source explained.
Although the default rate is not alarming, it is higher than in previous years.
Moratorium?
As for the possibility of enabling a payment facility plan so that those who fall behind can catch up, the sources ruled out that possibility, at least for now.
“We are going to wait for the ‘Bases’ law and the fiscal package to come out, which includes an AFIP payment plan. Only then, if they are approved, will we decide whether to activate any facility regime, but in any case it will be closer to the end of the year so that taxpayers who fell behind can catch up and recover the 30% discount per compliant person,” they explained.
In any case, Martín Llaryora’s administration does not have greater expectations about a change in the collection trend, at least in the coming months.
The data is key not only to know what resources the Governor will have to meet expenses in general but also, in the immediate future, to negotiate joint agreements with the teaching union that, as anticipated Commerce and Justicewill seek to recover the inflation trigger clause, among other claims.
