Analyzing the alleged exchange rate lag pointed out by some specialists and a possible devaluation jump, Zuchovicki recommended changing the focus and aiming at taxes “that make Argentina more expensive.”
Claudio Zuchovicki, who is often given a lot of attention by President Javier Milei
The financial analyst Claudio Zuchovicki, to whom the president usually pays a lot of attention Javier Milei, He said that the current economic plan should further lower taxes, which would in itself bring a solution to the dollar exchange rate, which some productive sectors are asking to increase in value against the peso.
Analyzing the alleged exchange rate lag pointed out by some specialists and a possible devaluation jump, Zuchovicki recommended changing the focus and aiming at taxes “that make Argentina more expensive.”
“The country is expensive because intermediation is expensive, 48% of the price of what we buy is taxes, that’s what’s expensive. As long as that root is not addressed, we are in trouble, and you can’t solve that by devaluing. Competitiveness comes from all the added costs that you have in the middle.”he stressed.
“I can also make this criticism of the current government, because when they raise rates, my VAT also goes up, everything that is variable also goes up. Why do they have to improve the government’s income if the effort is mine? So, if the idea is to remove the subsidies, lower my taxes as you raise rates,” he claimed.
In another part of the interview with Club de Inversores, the analyst referred to the arrival of investments and the possible inflow of dollars through tools such as RIGI or money laundering.
“It always ends up being a matter of credibility. Those who want to invest in Argentina, given the circumstances today, say yes. But who comes next? How many years will this process take? Will they regret it in the middle? Will society withstand the adjustment? Many questions arise,” he said.
“I worked for an international bank for a long time and I was one of those who traveled trying to attract investors to come and buy in Argentina, and they always told me that they didn’t care what the government did, they cared about what society wanted, if society wanted to change,” he recalled.
Source: Ambito
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