The Minister of Economy, Luis Caputo, has urged mayors and governors to make adjustments in their administrations, particularly in the tax area. The governor of Santa Fe, host of the meeting in Rosario, expressed that the taxes collected in the province must be reinvested in infrastructure works, emphasizing the need for the libertarian management to reconsider its paralysis of public works and its impact on the provinces.
In a letter sent to the 23 provinces, Caputo pressured the governors regarding the impact of municipal rates on the economy and requested measures against the application of disproportionate rates. Additionally, he criticizes the lack of actions to reduce the Gross Income tax, calling it "the worst tax."
The minister emphasized in a lengthy message that the Government will only consider tax reduction if a fiscal surplus is achieved, and stressed the importance of reducing the level of spending in some provinces and municipalities to achieve a healthier tax cut. Caputo also pointed out that no province has reduced the Gross Income tax so far, describing it as the worst that an economy can have.
Caputo's statements came after a meeting with governors of Córdoba, Entre Ríos, and Santa Fe, who criticized the national administration and emphasized the importance of fiscal and monetary orthodoxy. Despite the criticisms, the minister defended the current management highlighting the tax reductions made so far.
In this sense, Caputo reiterated his call to provinces and municipalities to unite in reducing taxes, criticizing illegal and arbitrary municipal rates that violate the federal revenue-sharing law. The minister urged municipalities to suspend their participation in the shared revenue pool if they do not adjust their rates to what is stipulated by law.
In summary, the Minister of Economy continues to pressure provincial and municipal authorities to implement adjustments in the tax area and reduce spending to achieve a more effective and healthy tax reduction.
