The expert also explained that the Government’s mandate is clear: achieve fiscal surplus, which implies “spending less than what you earn.”
After completing his first year in office, the president Javier Milei He confirmed that the Government will move forward with fiscal adjustment and a tax reform that seeks to eliminate taxes and return “fiscal autonomy to the provinces.” In this context, the economist Claudio Zuchovicki provided a look at the Executive’s fiscal strategy and the necessary conditions to reduce the tax burden.
Zuchovicki explained that the Government’s mandate is clear: “achieve fiscal surplus, which implies “spending less than what you earn“. According to the economist, when Milei took over, public spending represented between 45% and 47% of the Gross Domestic Product (GDP), while currently it was reduced to 31%. This adjustment, he indicated, is key for the economic plan of the ruling party can be sustained.
“If Argentina manages to grow 5% in 2025, as I estimate, it is very likely that revenue will increase and the Government will be comfortable lowering taxes.“said Zuchovicki in dialogue with Cadena 3.
About taxes
The economist emphasized the importance of the relationship between the central government and the provincial and municipal administrations to guarantee true fiscal simplification. “The effort now has to be made by the private sector, because the State has already shrunk. This tax reduction is necessary for GDP to grow and the economy to be more efficient“concluded Zuchovicki.
For Zuchovicki, “two or three days of high dollar volatility are coming”
The specialist also referred to the taxes that could be reviewed in the short and medium term, highlighting the PAIS Tax, whose elimination has already been confirmed, and the tax on Credits and Debits in Bank and Other Operational Accounts. In addition, he recalled Milei’s recent promise in La Rural to reduce withholdings on exports in 2025.
For Zuchovicki, the Government’s main challenge is to ensure that the tax reduction is comprehensive and effective. “It is essential that the tax reduction be national. If the State lowers a tax, but the province or municipality raises it, the effect is neutral. In reality, what happens is a transfer of wealth from the Nation,” he warned.
In this way, the economist supported the official intention to move towards a lighter and more efficient tax system, although he warned that achieving it will depend on both economic growth and effective coordination with the provinces and municipalities.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
