Historic Repair: The Government Announces Tax Changes for Savers

In a conference led by presidential spokesperson Manuel Adorni and the Minister of Economy, Luis "Toto" Caputo, the Government announced the launch of the “Historical Savings Restoration Plan for Argentinians”, a measure that seeks to leave behind years of currency and fiscal controls considered “persecutory.” The program will be implemented in two stages: one by decree and another through a bill that will be sent to Congress.

The Minister of Economy, Luis Caputo, leads this initiative aimed at reformulating the current regulatory framework, which the government accuses of discouraging formal savings in foreign currency. “This ends today,” Adorni stated, referring to a system that, in his words, “treated all Argentinians as if they were potential criminals.”

Criticism of the currency clamp and excessive fiscal control

The announcement included strong criticism of the foreign exchange control regime implemented in previous years. Adorni highlighted that the currency clamp was in effect for almost a decade and denounced that it equated buying dollars to a criminal act: “It put those who wanted to buy more than 200 dollars on the same level as a criminal like Al Capone.”

Meanwhile, the official questioned the use of state resources in financial surveillance mechanisms. “The fiscal voracity led us to waste resources on monitoring a person for buying a blender,” he quipped, while revealing that the UIF audited just 0.34% of suspicious transactions.

Structural changes in the financial information system

According to Adorni, the decree that the Executive Power will sign will review the regulations governing the Financial Information Unit (UIF), which will also have to adapt its internal regulations to the new model. The goal is to create a more predictable and friendly environment for savers, encouraging the formalization of funds in dollars “kept under the mattress.”

The second stage of the plan will require legislative approval.  Although the specific scope of the project was not detailed, it is expected to include reforms to the criminal tax law and a widespread relief in terms of tax compliance for individuals.

According to the Government's own data, for every peso that circulates formally, five do so informally, reflecting the magnitude of the black economy. This initiative aims to reduce that proportion and incorporate a greater amount of funds into the banking system.

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