Covid crisis: Argentina imposes special tax on the rich

Buenos Aires: Argentina has introduced a special tax (wealth tax) on the rich to overcome the financial crisis following Covid.

The additional taxes on the rich will be used to buy Covid defense equipment and provide financial assistance to the poor. There are an estimated 12,000 billionaires in the country.

The Senate passed the resolution by 42 votes to 26. Taxes are levied on those with assets of more than $ 2.45 million. Reuters reports that the tax will be two per cent of the total wealth.

President Alberto Fernandes said the decision would help overcome the economic downturn that followed the expansion of Covid.

The government estimates that $ 370 billion could be raised through special taxes. According to Bloomberg, Senator Carlos Caesario, who spearheaded the bill, said the tax would be levied only once.

He said the country would survive the Covid epidemic just as it had survived the world wars.

So far, Covid has affected 1.45 million people in Argentina. 39,000 deaths were also reported.