Mission of the OECD praises the Government and supports tax reform – The Reporter

The deputy director of Fiscal Affairs of the OECD who chaired a high-level mission of the agency in Argentina, Grace Perez Navarro, gave a boost to the Government today at a meeting with journalists by saying that the Government already made a positive change.

The mission takes place as a result of the officials of OECD came to participate in the 6th Seminar Tax for Latin america and the Caribbean of the OECD, which was time taking place in Buenos Aires, and will launch the work "tax Burden on labor in Latin america 2016".

Perez Navarro told The Columnist that the referents of the OECD will rise to the occasion to converse with the minister of Economy, Alfonso Prat-Gay, to know what you think in tax and what it expects of the international agency, and also the holder of the AFIP, Alberto Abad, among other officials. He commented that they want to offer help in view of the tax reform that raises the Government.

The next week, he will visit the country the director of Statistics of the OECD, Martine Durand, on 26 and 27 October, Argentina is expected to receive an upgrade in the sovereign rating by the agency, which now places it in the worst spot in the rankings (7 on 7) next to North Korea, Rwanda and Zimbabwe. A top note would facilitate access to more credit at less interest rate for long-term investments.

The under-secretary represent to the OECD the Ministry of Finance and Public Finance, Marcelo Scaglione, opened the talk with the journalists, asserting that the articulation of information-sharing that fate evaders already reaches almost all over the planet from the hands of the OECD and "today Argentina is coordinating with the united States the possibility of greater cooperation in this framework”, with the visit of the secretary of the Treasury, Jack Lew.

Before the pyrope Pérez Navarro, Scaglione said it’s not just about making a change in the tax base but also work “in a parallel way to spend better".

For his part, Angel Melguizo, head of Unit for Latin america and the Caribbean of the Development Centre of the OECD, in presenting the report on Tax Burden on Labour, he emphasized that in the region are very high labor taxes, while it is low the taxation of the income of natural persons.

For Melguizo, the minimum non taxable Earnings for workers in a relationship of dependency is in line with the OECD countries, but what is missing is to make progressive scales, which here are "flat" so that the top earners are not the most pay.

Melguizo insisted that it should encourage the formality, but that today the cost of taxes to the formality is very high.

Mario Pezzini, director of the Development Centre of the OECD, calculated the informality in the region in 55% and blamed the lack of productivity. In addition, he said that for the agency for the poverty is increasing, as the rate of bienesar that produces shows a deterioration.

he Called for a tax reform that will improve the fund-internal supported in the Tax Gain to the people and Scaglione responded that that is going to talk about in bilateral meetings.

To a query about the income tax, Pérez Navarro said that it is difficult to install it because the countries compete for capital, but Meguizo said that this is a topic to raise in tax reform, to broaden the base and make a scheme more fair.