BUENOS AIRES, Dec 8 (Reuters) – Argentina’s government will raise taxes in January, the country’s Economy Minister Sergio Massa said on Thursday, amid demands by unions to ease staff workload.

“With this tax relief, in 2023, no worker earning less than 404,062 pesos (about $2,378 per month) will pay the tax,” Massa said in a tweet.

The minister did not disclose the cost of this decision, which he said would involve approximately 312,864 workers.

The previous floor cost 330,000 pesos ($1,942.32).

With this reform, Massa said that less than 600,000 workers in the country will pay the tax, less than 10% of the total workforce in the country.

Employees with higher incomes will also get tax relief in the form of special deductions and tax scales, he added.

The decision can be taken well at a time when inflation is expected to be around 100% for the year 2022, cutting Argentina’s purchasing power.

($1 = 169.90 pesos)

Reporting by Lucila Sigal By Valentine Hilaire; Writing by Sarah Morland and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

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