The Minister of Economy, Luis Caputo, today renewed his requests to provinces and municipalities regarding the reduction of tax pressure. According to Caputo, these entities will benefit from the improvement in revenue collection, resulting from the recovery of economic activity. In this regard, Caputo pointed out that in one year they managed to reduce the consolidated deficit by 15 percentage points of GDP, decrease state spending by 30%, and stop monetary issuance.
"These measures have led to a phenomenal decrease in inflation and, consequently, in the level of poverty, as well as a rapid economic recovery," the minister stated. Furthermore, he emphasized that the improvement in revenue collection is generating resources that, following the president's promises, are being used to reduce taxes so that the population can access goods at more affordable prices.
Caputo stressed the importance of reducing the deficit through decreased spending rather than raising taxes, as some municipalities and provinces are unjustifiably doing, according to his words. He also urged local administrations to join national efforts and reduce both the Gross Income Tax and municipal rates, taking advantage of the increase in their revenue from collection.
