The national government has decided to split the tax reform into multiple bills that will be presented sequentially to Congress, with the aim of minimizing immediate fiscal impact and reducing political and economic resistance, official and legislative sources reported in recent hours. Among the proposals circulating in technical meetings, a transition for monotributistas (simplified tax regime payers) to a general scheme with gradual incentives is being evaluated, aligned with International Monetary Fund (IMF) recommendations to simplify the system and formalize the economy. However, official sources denied recent media reports indicating the government had decided to definitively eliminate the Monotributo, though they confirmed that profound modifications to the regime are being studied, which could redefine its structure and obligations. The reform of the federal coparticipation regime—which includes the redistribution of revenue between the Nation and the provinces—was rescheduled for a later stage, according to the Chief of Staff, Manuel Adorni, who explained that these initiatives will be outside the presentations made during the extraordinary sessions of December 2025 and will be concentrated in 2026. From the Casa Rosada (Government House), they emphasize that any change to the coparticipation system must be linked to greater territorial fiscal competition, accompanied by spending cuts by the provinces, with a view to consolidating a sustainable fiscal balance. Official sources acknowledge that several of the proposed modifications imply significant fiscal costs in the short term, which could strain revenue collection. This measure is part of the criteria to mitigate the tax burden in key productive sectors. In parallel, officials from the Executive branch are analyzing the transformation of the Monotributo regime, described by the government as 'unsustainable' in the medium term.
