The Chamber of Deputies is debating this Wednesday a series of projects sent by the Government of Javier Milei, with the reform of the Central Bank's Organic Charter and the expansion of the Fiscal Innocence regime among the initiatives of a key session to advance the structural reforms promoted by the ruling party.
The day's objective is to address and grant preliminary approval to reforms that the libertarian administration is pushing to ensure Argentina's economic stability.
Reforms of the BCRA
One of the central projects proposes a profound modification of the functioning of the Central Bank of the Argentine Republic (BCRA), with the aim of guaranteeing "zero issuance", ending inflation, and protecting the agency from the political decisions of current governments.
President Javier Milei
The initiative establishes a single mandate for the BCRA: preserve the value of the currency and combat inflation. In this way, it sets aside the multiple purposes contemplated during previous administrations, which ended up generating inflationary crises.
Additionally, the project completely prohibits financing of the public sector. The reform will prevent temporary advances to the National Treasury, loans to provinces and municipalities, and the purchase of public securities in the primary market.
The text also seeks to impose limits on the use of so-called "non-transferable notes" and restrict the remittance of profits to the Treasury to the actual earnings obtained. Instead, profits arising from variations in asset prices must be allocated to a non-distributable technical reserve.
Another point of the reform aims at the institutional shielding of the Central Bank. To avoid arbitrary removals for political reasons, the conditions necessary to remove its president and directors will be raised, requiring the support of two-thirds (2/3) of both chambers of Congress.
President Javier Milei
Fiscal Innocence II and formalization of savings
The session of Deputies will also include the consideration of the "Fiscal Innocence II" Bill, which seeks to provide greater legal certainty to encourage the use and formalization of the so-called "mattress dollars".
The proposal expands access to the Simplified Income Tax Regime for all individuals and undivided estates residing in the country, by eliminating the current income limits set at $1 billion annually and the asset limits established up to $10 billion.
Furthermore, in the event of a presumed discrepancy in declarations, the initiative stipulates that the burden of proof will fall exclusively on ARCA, and establishes limits on the sources of information that the agency may use to challenge the taxpayer.
The project extends the deadline to join the regime and access its benefits until December 31, 2027. It also includes a permanent 25% reduction in fines for formal infractions for Micro, Small, and Medium Enterprises (MiPyMEs), individuals, and non-profit entities, as well as a 50% reduction in certain outstanding fines.
The agenda for this Wednesday is completed with the ratification of the Patent Treaty and free trade agreements, in a session that will debate reforms with which the Milei Government seeks to advance its program to ensure the country's economic stability.
