Argentina's Government Targets Tax Reductions Amid Fiscal Reform

Federico Sturzenegger, Argentina's Minister of Deregulation and State Transformation, visited Villa María to discuss the government's achievements under President Javier Milei and potential tariff relief.

During an interview, Sturzenegger emphasized the accomplishments of the first year of Milei's administration, particularly the stabilization of fiscal accounts, which he described as crucial for reducing inflation. He stated, "We have organized fiscal accounts, reducing public spending and eliminating the deficit that was the cancer of Argentina." These measures, according to the minister, have provided relief for families and promoted economic freedom.

Sturzenegger defended the strategy of downsizing the state to lower taxes, citing the closure of the National Microcredit Commission (CONAMI) as an example. He noted that 99.8% of resources allocated to this area did not yield tangible benefits for citizens. "Argentina is a country that wants to promote employment but imposes very high taxes on labor. We should lower the check tax and taxes on foreign trade. There needs to be a comprehensive debate on this," he remarked.

Regarding the elimination of taxes such as the PAIS tax and export tariffs, Sturzenegger indicated that any changes would depend on the government's ability to reduce public spending. He stated, "There will be a comprehensive debate on which taxes we should lower, but it will all depend on consolidating a more efficient public sector." He added, "The goal is to provide Argentines with a more efficient structure, with fewer taxes and greater capacity to generate employment."

Concerning the Arco Norte bypass, the minister explained that the government is redesigning the road concession network and assured that updates would follow. "The idea is definitely to put our road system in good condition and complete pending works," he asserted.

Addressing concerns from workers at the Villa María explosives factory, Sturzenegger denied any possibility of layoffs, clarifying that the government aims to transfer activities to the private sector. "This is not about closing down but about changing the way we produce to grow," he explained.

Sturzenegger's visit raised expectations regarding the completion of key projects, tax reductions, and the reorganization of the state system. Meanwhile, residents of Villa María are closely monitoring the impact of these policies on local and national levels.

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