Argentina set to reach 2010 tax goal in October

* October tax data due for release next week

* Tax revenue rising at annual rates of about 35 percent

BUENOS AIRES, Oct 25 (BestGrowthStock) – Argentina will meet its
target for full-year tax revenue this month, the head of the
country’s tax agency said on Monday, helped by brisk economic
growth that is supporting continued strong government
spending.

Tax revenue in South America’s No. 2 economy has been
growing at an annual rate of about 35 percent in recent months,
bolstered by export levies on a bumper soy and corn harvest and
consumer taxes.

“With October’s revenue, we’re going to exceed the annual
target for 320 billion pesos ($79.3 billion),” AFIP tax agency
chief Ricardo Echegaray told reporters.

Strong tax revenue growth helps President Cristina
Fernandez sustain public spending that is growing at annual
rates of about 30 percent a year.

Fernandez’s husband and predecessor, former President
Nestor Kirchner, is expected to run for a second term in an
October 2011 presidential vote, and public spending normally
rises during election campaigns.

Economic analysts say high public spending growth is
fueling inflation running at an annual rate of about 25
percent, which in turn fuels revenue from income taxes and a
value-added tax.

The government is due to publish October tax revenue data
early next week. (ARECI10: )
($1 = 4.04 Argentine pesos)
(Reporting by Karina Grazina; Writing by Helen Popper; Editing
by Padraic Cassidy)
([email protected]; +54 11 4318 0655; Reuters
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Argentina set to reach 2010 tax goal in October