Economy Politics Local 2025-11-16T01:36:28+00:00

Argentina's President Debunks Rumors of Monotributo Abolition

Argentine President Javier Milei forcefully debunked rumors of an imminent end to the monotributo, calling them lies and accusing the publisher Errepar of fueling panic among three million taxpayers. The government stated that no final decision on tax reform has been made and urged the public not to trust leaks until official bills are presented.


Argentina's President Debunks Rumors of Monotributo Abolition

The President links reports on the potential end of the simplified tax regime (monotributo) to 'affected interests' due to cuts in official state funding and anticipates that he will insist on a reordering of the tax, pension, and labor systems.Milei emphasized that 'there is no closed project' regarding the monotributo and the Income Tax (Ganancias), and he called to 'lower the anxiety' until the package of tax reform and labor modernization is ready to be sent to Congress.Until the Government shows its tax reform project, the discussion will continue to be fought on the ground of leaks, technical documents, and public denials, with monotributistas at the center of the scene and attentive to every signal that comes from the Ministry of Economy and the Presidency.On the other side, specialists and taxpayers demand clear signals and official texts to anticipate the impact of the changes, in a context of high inflation, recession, and strong tax pressure on the real economy.While the Casa Rosada tries to close the controversy by insisting that 'the monotributo is not eliminated,' the debate has exposed how sensitive any modification is to a regime that the livelihood of millions of independent workers depends on.In public statements and on social media, the head of state described this information as 'lies and operations by criminals who use the patent of journalists' and directly pointed to the tax publisher Errepar as the origin of the controversy, while insisting that any reform will only be known when the Government finishes drafting its bills.The controversy was sparked by a technical note from Errepar titled 'Goodbye to the monotributo and a new scheme for the self-employed?', published on November 13.Chambers of professionals, accountants, and tax advisors warned that an abrupt shift to the general regime could multiply obligations, administrative costs, and tax burden for self-employed individuals, entrepreneurs, and service providers, if it is not accompanied by a profound redesign of aliquots, deductions, and billing thresholds.The Government, for its part, maintains that the current structure combines distortions and 'gray zones' that favor evasion and unfair competition compared to dependent work.However, it also confirmed that the administration is working on structural changes to the tax and labor system, in line with what Milei presents as a 'shock program' to simplify taxes and stimulate formal employment.The reports on the possible end of the monotributo were also based on a signal that the Minister of Economy, Luis Caputo, would have given in private meetings with businessmen.The report stated that the Executive was analyzing a package of changes that would include the migration of about three million monotributistas to the general self-employed regime, a new scheme for Income Tax deductions, the unification of the non-taxable minimum, and an eight-point reduction in employer contributions, with the objective of formalizing the economy and redesigning labor and pension incentives.The Casa Rosada reacted by accusing the publisher of mounting a 'media opera,' fueled by portals and economic analysts who amplified the hypothesis of the end of the simplified regime.On the official agenda, ideas appear such as expanding the possibility of deducting documented expenses, encouraging the issuance of invoices, reducing employer contributions for new hires, and redefining the boundary between employees, the self-employed, and simplified taxpayers.None of these initiatives has yet been crystallized in a bill, but the leakage of drafts and private presentations is fueling noise in the markets and among the universe of monotributistas.The clash between Milei and Errepar is taking place in a climate of growing confrontation from the Government with sectors of the press and the technical establishment that analyze its reforms.Different chronicles coincided in that the head of the Ministry of the Treasury admitted that the evaluation of eliminating the simplified regime and moving towards a 'single system' for independent workers is being considered, with a completely redesigned self-employed regime, greater deductions, simplification of procedures, and changes in the VAT threshold and the Income Tax minimum.At press conferences, he maintained that the Government 'has not announced nor made official' the elimination of the monotributo, reiterated that the comprehensive reform is still being prepared, and asked not to consider 'drafts' or leaks from technical meetings as final.However, the Ministry of Economy denied that there is a closed decision and spoke of 'work scenarios' still under study.Beyond the official denials, the mere possibility of touching the monotributo has set off alarms among nearly three million small taxpayers who depend on this simplified scheme to bill and maintain their formality.Buenos Aires, November 15, 2025 – Total News Agency-TNA-President Javier Milei came out to forcefully deactivate the versions that gave as imminent the elimination of the monotributo and a profound change in the Income Tax.'I am the main source of information,' the President stressed in a message that was aimed at both the media and specialized studies.In parallel, the spokesperson and Chief of Cabinet, Manuel Adorni, tried to put a damper on the alarm generated among taxpayers and professionals.'The projects will be when they have to be.'