Upon receiving the payments, the affected residents found taxes applied by the Kirchnerist government
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In recent hours, it was revealed that the Government of Axel Kicillof applied the Gross Income Tax to compensation payments that the Government of Javier Milei had granted to those affected by the floods in Bahía Blanca, Buenos Aires province.
The economic compensations, promoted by Casa Rosada as reparation for material losses, were subject to a provincial tax that should not be applied under any circumstances in this case.
The conflict began when affected residents, beneficiaries of the assistance program created by President Javier Milei, reported that, upon receiving the payments, they found deductions applied by the Kicillof Government corresponding to the Gross Income Tax.
The surprise and outrage were immediate, since the compensations do not constitute income that generates wealth or commercial gain, but rather an amount intended to repair damages.
Axel Kicillof, gobernador bonaerense.
How Milei Government's compensation program worked
After the floods in Bahía Blanca due to the lack of public works under the local Kirchnerist government, the Javier Milei Government decided to create a special fund of 200,000 million pesos (440 million dollars) to assist those affected. Its administration was entrusted to the Federal Emergency Agency, which reports to the National Security Ministry, led by Patricia Bullrich.
El presidente, Javier Milei.
Within this framework, a subsidy scheme called Single Reconstruction Supplement (SUR) was created. This subsidy is monetary, non-contributory, paid only once, and is intended to compensate for material losses caused by rain and floods.
Regarding the SUR amount, the libertarian administration established different amounts according to the level of impact: for neighborhoods with "high impact" from water, it granted 3 million pesos (6,600 dollars); for those with "medium impact," 2 million (4,400 dollars). At that time, the national Government explained that it would distribute the funds in a "direct, proportional, and intermediary-free" manner.
