The Minister of Economy, Luis "Toto" Caputo, confirmed that after Sunday's legislative elections, the second-order reforms will be implemented, and he announced that the new tax package will include measures for reduction, elimination, and simplification of taxes.
"Part of what's coming is the tax reform, which will benefit everyone. When I say everyone, I mean the Nation, provinces, business owners, and the people. We're moving toward a tax simplification scheme, lower taxes, and tax reductions. There will be a reduction in income tax for individuals," the minister stated. In this context, Caputo referred to the Income Tax.
With the latest update, applied in July, single salaried employees pay the tax starting from a gross salary of $2,624,280, while married employees with two children pay it starting from $3,453,000.
Javier Milei y Luis Caputo.
The Minister of Economy's statements were made during his participation in the Economic Outlook Series of the Córdoba Stock Exchange, held this Wednesday. In that context, the official called on non-Kirchnerist Argentines to vote for La Libertad Avanza (LLA) in the upcoming legislative elections in order to not waste their vote.
Caputo emphasized that the ongoing economic reforms will create incentives for domestic savings and will promote the development of the capital market. "Let's understand the potential of this. If we manage to develop the capital market and the Government can no longer run a deficit, where does all that go now? How is that channeled? Loans to the private sector," he explained.
Regarding the relationship with the governors, key players for passing the reforms in Congress, the minister assured that even Peronist leaders support the economic direction.
Caputo also mentioned the need to review the Gross Income Tax, which he described as "the worst of all." "I'm asking for help with Gross Income Tax. We're all clear on this. We, from the state, know that the check tax and withholdings are the worst, and the governors are very clear that Gross Income Tax is the worst of all taxes, worse than the other two I mentioned," he stated.
Luis Caputo, ministro de Economía.
According to a survey by the Argentine Industrial Union (UIA), the outstanding balances of the Gross Income Tax that the provinces owe to companies currently amount to about $54,000 million. The report details that 57% of those balances correspond to jurisdictions where the companies do not have operational facilities.
Additionally, the UIA indicated that the effective Gross Income Tax rates average 4%, when they should not exceed 1.5%. Of all the companies surveyed, more than 10% consider the outstanding balances to be unrecoverable, while 40% estimate that refunds may take up to a year. Furthermore, 77% of companies stated that they have requested reimbursement without receiving a response.
Finally, Caputo warned that the progress of the reforms will depend on the outcome of Sunday's elections, since the ruling party needs to expand its legislative representation. "I changed my mind about this. I didn't give these midterm elections much importance. Today, I believe they're more important than the 2027 presidential elections. Look at what I'm telling you," he concluded.
