Argentina has imposed a one-off tax on its richest people to help pay for medical supplies and support businesses devastated by the COVID-19 pandemic.

BBC reported that those with declared assets worth more than 200 million pesos (or €8 million) will have to pay 3% tax on assets held within the country and over 5% on those held abroad.

Known as “the millionaire’s tax”, the government hopes to raise around €2.5 billion. It will affect 12,000 people and will also help pay for scholarships and social aid.

Argentina’s governmental officials passed the tax in December but have been criticised by the Opposition who described it as “confiscatory”, while others fear it might become permanent.

However, the country has been badly hit by the virus, which catapulted already high rates inequality. Nearly half (40%) of Argentina live below the poverty line.

International charity Oxfam has suggested that progressive taxation of the rich could be essential for the country to make a recovery.

The Latin American state has almost two million confirmed COVID-19 infections and more than 47,00 death toll from the virus.

Photo: Argentine National Congress building by  Jorge Láscar 

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