ARGENTINA has passed a one-off wealth tax to help pay for relief packages linked to the coronavirus pandemic.

The move, approved by senators on Friday night, applies a 3.5 per cent levy on wealth held within Argentina and 5.35 per cent on wealth held abroad.

It will apply to those with assets exceeding 200 million pesos (£1.8 million), an estimated 12,000 people in the country of 45 million.

President Alberto Fernandez’s government hopes to raise 300 billion pesos with the measure, with funds distributed between medical supplies, relief to small and medium-sized businesses, social developments and education.

A quarter is also earmarked for natural gas exploration, development and production, with Argentinian authorities worried that declining natural gas production may lead to shortages next winter.

Tax agency chief Mercedes Marco del Pont said the move was “far from taxing productive activity.”

Neoliberal opposition party Juntos por el Cambio of former president Mauricio Macri said it was “confiscatory” and would punish the rich.