Javier Milei's government seeks to approve two key reforms for its economic program
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The National Senate is holding an important session this Friday in which it will define the 2026 Budget bill and the so-called Fiscal Innocence Law, two central initiatives for the agenda of Javier Milei's government.
The debate is taking place within the framework of an extraordinary session period convened by the president and began shortly after 12:20 p.m., with expectations focused both on the official macroeconomic projections and on the proposed changes to the current tax system.
One of the main focuses of the day is the consideration of the budget for the year 2026, which contains the economic estimates prepared by the Executive Branch.
According to what has been presented by the government, the projected scenario includes strong economic growth of 5% for that year, annual inflation of 10.1%, and an official exchange rate that would stand at around 1,423 pesos per dollar by December. These figures serve as key parameters for the planning of public spending, revenue collection, and fiscal policy in general.
El Congreso nacional.
The Fiscal Innocence Law
Meanwhile, the upper house is analyzing the Fiscal Innocence Law, an initiative that introduces significant changes to the tax legal framework. The bill proposes amendments to the Criminal Tax Regime (Law 24.769), the Tax Procedures Law (11.683), and the Civil and Commercial Code of the Nation, in addition to creating a Simplified Sworn Statement Regime.
One of the most notable aspects of the law is the creation of a "simplified income tax regime." According to the official explanation, taxpayers who join this scheme will be "shielded forever."
The regime sets an asset cap of up to 10,000 million pesos to be able to join and eliminates the obligation to report changes in assets. Likewise, the spending of those who are within the system will not be monitored.
Javier Milei, presidente de Argentina.
In practice, this means that the Revenue Collection and Customs Control Agency (ARCA) will only collect income tax on effectively invoiced income. Any potential increase in assets will not be subject to oversight and, based on the declared income, the corresponding expenditures will be deducted.
Article 39 of the bill "establishes the releasing effect of payment if the content of the sworn statement proposed by ARCA is accepted and payment is made on time, except when income has been omitted."
The Fiscal Innocence Law also introduces substantial changes in the thresholds from which an act is considered to constitute the crime of tax evasion. In the case of simple evasion, the minimum amount is raised from 1,500,000 pesos to 100,000,000. For conduct to be considered aggravated evasion, the amount must exceed 1,000 million pesos.
With all this, the government will seek to encourage citizens and small savers to use the "mattress dollars" in the real economy without fear of being treated as criminals and facing automatic investigations into the origin of those funds.
