Retirements, rates, income tax and other new definitions by Luis Caputo

Retirements, rates, income tax and other new definitions by Luis Caputo

Within hours of the publication of the new decree of deregulation and shipping the package laws of reformthe Minister of Economy, Luis Caputo, gave new definitions about the changes that, at the request of the president Javier Milei, They will seek to implement to reorganize the economy. Retirements, rates, profits, the adjustment in policy and transfers to the provinces, in the focus of the Treasury.

The head of the Treasury Palace spoke tonight about the economic plan of the Government of Freedom Advancesabout which he reaffirmed that his objective will be “balance public accounts” to go towards zero deficit at the end of the year. In this regard, he reiterated that it will be based “on a strong fiscal and monetary anchor” which, in addition, will be accompanied by an exchange anchor.

To this end, the government is working on tender for a bond which will target importers who currently have unpaid commercial debt with suppliers, as a tool to eliminate excess pesos from the economy. “Importers will be given a bonus in dollars. The bonuses are paid in pesos and the Central eliminates them,” said Caputo in dialogue with La Nación +, and explained that in this way “the surplus of pesos will be eliminated and will cause inflation expectations to fall.”

Caputo on Earnings

Following this line, he highlighted thatThe main objective of the Milei government “is to go to zero deficit”so all instruments and measures will be focused on that plan.

For this reason, he announced that they will work on a scheme that will reverse the Income Tax reform, in order to rebuild collection and help make the goal achievable in the short term. “Argentina has little credibility in its public officials. We needed to gain that credibility, so we had to show that reaching zero deficit is credible,” he said.

In that sense, and given the questions that the possibility of rolling back the Profit reform has received in recent days, Caputo explained that, in the situation in which the country finds itself, “I am not managing wealth, I am managing scarcities.”

“None of us like to raise taxes. But, within what was being done in this package of measures, it had its logic,” he emphasized.

Retirements

When asked about the formula of retirements, The minister insisted that it will be modified. “With the previous formula, what retirees would have lost in the next four months as a result of that formula, would have meant, for the treasury, a saving of two deficit points. If we continued with that formula, retirees would have lost purchasing power, more or less, in the coming months by 40%. That formula is very bad. The government is not speculating, it is protecting them,” he noted.

In any case, he did not give details about what the future formula will be. “We’re taking it out now and we’re going to think of a good alternative so we don’t have to deal with these problems,” he said.. Days ago, he mentioned the possibility that, while the scheme is reconfigured, increases will be granted through bonuses.

Another of the strongly questioned aspects of the adjustment plan has to do with the Allocations and the Enhancement Plans. In the first case, increases will be granted but they will travel below the estimated inflation. In the case of the latter he said: “The Empowerment Plans are frozen. We are not eliminating them. What we are telling the provinces is we do not have money, which is the reality.”

And he took the opportunity to point out the governors: “There are many governors that they have already understood that we are facing a new system, that People understood the story that the problem is not the dollar, nor inflation, nor the debt, but rather the fiscal deficit. And today he is demanding that. There are other governors who continue with the mentality of recent years of coming to ask for more money. There is no more money. The solution is to make your spending more efficient. “You can’t do magic.”

Rates

Regarding energy and transportation rates, Caputo explained that “the subsidies today so much of energy like transport They are two product points. We are going to correct them at a rate of approximately one third per year. So today we are correcting 0.7 of those two points, of which, 0.5 is energy and 0.2 is transportation.”

“We want to change the approach that, instead of subsidize the offer, there is going to be an approach of subsidizing the demand, then people are going to be told that they have a certain amount of kilowatts to spend per month. “If you are within that expense, you will be within the subsidy, otherwise you will start paying another rate,” he deepened. And he clarified that “The full rate will be paid in three years.”

Deregulations

Regarding the work of the economic team on the decree and the package of laws to reorganize the economy, he explained that both aim “to simplify life to people, that is freedom too. In other words, it is starting to remove all those obstacles that remain in people’s daily lives and that people are very tired of those things.”

And he announced that “as far as it is being decided now, there is a deregulation decree, it includes this work that he was doing Frederick Sturzenegger. It will greatly simplify the lives of citizens. And what the law says also points to the same thing, the objective is to simplify people’s lives.”

News in development.-

Source: Ambito

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