Javier Milei's government achieved the largest tax reduction recorded in Argentina's history during its first two years in office, between 2024 and 2025.
Through the elimination or reduction of more than 20 key taxes, the libertarian administration produced a historic drop in the tax burden, which fell to 21.4% of Gross Domestic Product (GDP) in 2025, the lowest level since 2006, an unprecedented decrease in the country's history.
This figure comes from a survey by the Instituto Argentino de Análisis Fiscal (Iaraf), which confirmed that the tax burden reached its lowest level in two decades. This reduction took place in parallel with the elimination of the enormous inherited fiscal deficit, estimated at 15 points of GDP at the beginning of the term, and its subsequent conversion into a surplus through the reduction of public spending.
El presidente Javier Milei mirando a sus seguidores
Milei government's massive tax cut
The tax cut included broad-ranging measures that affected consumption, production, and foreign trade. Among the most relevant decisions is the total elimination of the Impuesto PAIS, which taxed purchases in dollars at approximately 30%, including credit card spending abroad, imports, and the purchase of foreign currency for savings.
This tax accounted for nearly 5% of total revenue in 2024 and ceased to apply on December 23 of that year, when its legal term expired, without the government extending it.
Javier Milei.
In addition, Milei's government moved forward with the reduction of export duties, especially in the agricultural sector. For example, the rate applied to soybeans was reduced from 33% to 24%, while derivative by-products, such as flour and oil, fell from 31% to 22.5%. Reductions were also recorded for corn, sorghum, and sunflower.
In the case of beef and poultry, export duties dropped to 5%. Meanwhile, export taxes were eliminated for regional economies, dairy products, pork, various beef cuts, and more than 4,400 industrial products.
El presidente Javier Milei.
The tax reduction process also extended to domestic taxes and import tariffs, with the aim of reducing costs and facilitating access to goods. In the case of automobiles, the 20% domestic tax was eliminated for certain vehicles and was reduced from 35% to 18% for other segments, which caused an estimated price drop of between 15% and 20%.
Likewise, taxes applied to cell phones, televisions, and air conditioners were reduced and eliminated, along with cuts in import tariffs on technology, video game consoles, textiles, and capital goods.
Javier Milei.
The tax relief also included changes in the Monotributo regime, through the updating of brackets and billing caps above inflation, with the aim of preventing taxpayers from being pushed into higher categories as a consequence of the general increase in prices.
Another factor that helped reduce the tax burden was the sharp slowdown in inflation. The drop in inflation from levels close to 25% per month in December 2023 to figures close to 2% per month significantly reduced the so-called inflation tax, considered one of the most important indirect burdens on the population.
The result of this set of measures was an unprecedented reduction in the tax burden, something that no other president had achieved on a comparable scale, considering both the elimination and the reduction of taxes in such a short period. The consolidation of the fiscal surplus allowed this tax cut to be carried out without generating a deficit, freeing up resources for the private sector.
