Argentina’s economic turnover and success under President Javier Milei since he took office in 2033 have been nothing but spectacular. Javier Milei is at it again when he pledged to significantly overhaul the country’s tax system, with a bold goal: eliminating 90% of federal taxes by 2025.
President Javier Milei announced a tax reform for 2025 that will eliminate 90% of national taxes during his government’s first anniversary. In his speech, he highlighted that his measure will encourage competition between regions, attract investments, and promote economic growth.
He said: “My team is finishing these days a structural tax reform that will reduce by 90% the amount of national taxes and will give back to the provinces the tax autonomy they should never have lost.
The president also said that he will eliminate exchange control in 2025, allowing residents to operate with the currency of their choice, except for tax payments, which will continue to be done in Argentine pesos.
Milei highlighted the economic progress his administration has chopped in his first year in office.
“We are getting closer and closer to inflation being just a bad memory,” he said. “We eliminated more than two regulations per day, we freed up the skies. We have carried out the biggest structural reform in our history.”
President Javier Milei also emphasized the country’s progress in economic freedom rankings: “A year ago, we were among the worst 35 countries in the world in this regard, and today we are in the middle. And most importantly, we managed to protect the most vulnerable sectors while implementing the necessary adjustment.”
In line with his vision of a more efficient state by slashing government spending by 5% of GDP by the end of 2023, he began to accomplish this by cutting state fuel and transportation subsidies, pausing public works tenders, and eliminating regulatory rules. He promised to audit and eliminate non-essential state agencies and enterprises. “We are going to carry out an inclement audit to move forward with the deepest public spending reduction in Argentine history, which will bequeath us a smaller, more effective and cheaper state for all tax payers,” he assured.
Milei’s tax reform proposal for 2025 represents a significant shift in Argentina’s fiscal policy. It aims to promote economic growth, simplify the tax system, and increase economic freedom. While challenges lie ahead, the potential benefits of this reform could have far-reaching positive impacts on the Argentine economy.
