Two government officials who are aware of President Javier Milei’s plan have stated that he intends to introduce new regulations aimed at raising the count of Argentines who pay income tax. This is part of a larger strategy to stabilize the government’s finances.
The officials, who asked to remain anonymous as the plan has not been disclosed to the public, stated that the proposal to be presented to Congress on Tuesday declares that individuals earning over 1.3 million pesos (US$1,583) per month will be liable for the tax.
Presidential Spokesman Manuel Adorni announced to reporters on Tuesday morning that when the fiscal and macroeconomic conditions get better, the government will contemplate reducing taxes.
Adorni confirmed that the bill proposing this tax reduction will be submitted to lawmakers later in the day. Adorni referred to the current taxes in Argentina as unfavorable and excessively high.
government officials who stated that the minimum threshold for payment of income tax will be modified on a quarterly basis in alignment with the inflation rate. The suggestion was initially disclosed by government authorities. La Nación newspaper.
Since October, individuals in Argentina who earn less than 15 times the minimum wage, equivalent to approximately 2.3 million pesos, have been excluded from paying income tax.
This modification was implemented by the former economy minister, Sergio Massa, as a strategy to increase his public support before the presidential election, which he ultimately lost to Milei.
Milei, a congressman who served for only one term, aligned with the Peronist government and voted in support of the income tax reduction suggested by Massa.
Adorni stated on Tuesday that his position has undergone a change this year due to the necessity of achieving fiscal equilibrium.
(BLOOMBERG)
