Gov’t rules out limits on credit card purchases abroad

AFIP’s Tax Agency head Ricardo Echegaray ruled out today the imposition of limits on credit card purchases abroad.

Yesterday, the government made official that all debit card purchases abroad, including Internet transactions, will be charged with an additional 15 percent income tax advance as part of a policy to control Argentine expenses internationally.

“It is categorically dismissed the idea of setting limits to international credit card purchases. Those who have a clear tax situation can consume where and whatever they feel like it,” the official explained today in a televised interview.

Echegarray remarked, nonetheless, that expenses abroad should be in pace with the tax returns statement presented to AFIP.

“There is no new tax. What is in place is what we already had: a system of control. Every country has its own tax mechanisms for foreign purchases. Frequent travelers already know that”, AFIP’s boss stated.

The tax agency seeks to have a stronger grasp on contributors, who according to the tax bureau’s data spent 7.4 billion pesos between January and June 18th 2012 in purchases made abroad and paid with 168,000 credit cards.