Argentina to help low-income people cope with inflation

Argentine Economy Minister Martin Guzman holds a news conference on agreements with the International Monetary Fund (IMF), in Buenos Aires, Argentina January 28, 2022. REUTERS/Agustin Marcarian

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BUENOS AIRES, April 18 (Reuters) – Argentina’s government said on Monday that the country’s poorest would receive help to cope with soaring prices under a special aid package to be funded by taxes on companies benefiting from windfall gains from the war in Ukraine.

Workers included in the measure will receive 18,000 pesos ($158) in two instalments and retirees will receive 12,000 pesos ($106) in a single payment.

The government has said it will fund the bonuses with a tax on companies that have seen “windfall income” generated by the war in Ukraine. This includes grain exports and would affect companies whose profits exceed 1 billion pesos ($9 million) a year.

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“A bonus will be given to compensate for inflation, to increase purchasing power (…) The war in Ukraine is putting pressure on inflation and it is necessary to strengthen incomes policy,” the minister said. of the Economy Martin Guzman during the presentation of the plan alongside the President. Alberto Fernandez.

The government did not release the total cost of the program or provide details on the tax rate. The proposal still needs to be approved by Congress.

Last week, Argentina announced that monthly inflation for March was 6.7%, the highest in two decades. The annual inflation rate reached 55.1% in March. Read more

“There is an emergency in the most neglected sectors of society,” Fernandez said. “Inflation has local and international problems.”

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Reporting by Jorge Otaola Writing by Carolina Pulice; Editing by Sandra Maler

Our standards: The Thomson Reuters Trust Principles.

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