The Minister of Economy, Luis Caputo, revealed that the national government is working on a tax reform that will encourage competition among provinces over the VAT rate to be charged. According to him, a 9% will be charged on the 21% VAT, plus the respective provincial rates.
The initiative would be presented in the National Congress when "political timing" allows, Caputo clarified. Regarding prices, he mentioned that the process of disinflation continues, although sectors such as clothing and footwear still maintain high prices because competition has not fully entered.
The minister stated that the inflation in April was around 3%, below that recorded in March. He emphasized that the intention is to divide the VAT between the nation and the provinces, seeking to adjust prices to the reality of the country. Caputo expressed the importance of explaining to the population that they are building "another Argentina."
Additionally, he pointed out that the country is more expensive in dollars compared to the previous administration, which he considers indicative of poor economic performance. Finally, he mentioned that they are focused on the long term, seeking to keep salaries stable in dollars.
