Argentina and Milei take a step back on tax reforms

The Argentine government withdraws the fiscal package from the so-called ‘Ombinus law’, a central project of President Javier Milei’s administration. The announcement was made by the Minister of Economy, Luís Caputo, highlighting that in the “dialogue” with the remaining political blocs the party in power found “a clear consensus” on a good part of the more than 500 articles in the text and that, therefore, it prefers continue the process for approval in the Chamber of Deputies. “This does not mean in any way that we give up on our commitment to achieving fiscal balance”, specified the minister. “Our goal is to achieve zero deficit.”

The fiscal package – which covered money laundering, a tax moratorium, a review of taxes on wealth, high income and exports, and changes to the calculation of pension increases – had been opposed by legislators and governors in the affected provinces, as the Minister of Economy recalled. The law, which will be analyzed by the Chamber of Deputies next week, aims to revolutionize the Argentine economic system by revising hundreds of previous regulations. This week, in an interview, President Milei said that Argentina is closer to the goal of dollarizing the economy. «Dollarization is an objective of this government and will be achieved when the conditions are appropriate», words of the Minister of Economy. “Conditions today are better than when we took office and I agree” with the president on this point.

Source: IL Tempo