Argentine Congress approves wealth tax to boost revenue hit hard by the COVID-19

Argentina's Congress approved a wealth tax on Friday that will impose a one-off levy on those who have large personal fortunes. This step was taken to boost revenue hit hard by the COVID-19 pandemic.

The legislation stipulates a one-off tax of at least 2% on individuals with assets of more than 200 million pesos ($2.45 million), with the government aiming to collect some $3.7 billion.

Proceeds of the tax will be used to buy equipment and supplies to fight COVID-19, fund assistance to small and medium-sized companies, support poor neighborhoods and to help develop the domestic natural gas sector.

Argentina is heading into its third year of recession, with high inflation and a sharp increase in poverty. And the law has received criticism from the more conservative opposition.