Ministers of Economy from various Argentine provinces expressed caution and requested more details following the announcement by the National Minister of Economy, Luis Caputo, about a possible reform in the distribution of the Value Added Tax (VAT).
Pablo López criticized the unilateral decisions of the Government that affect provinces and municipalities, stating that simplifying the national debate and reducing the tax burden does not address the issues comprehensively. He also highlighted the lack of discussion on how the VAT will be distributed among the provinces according to the territory of origin or destination of the transactions.
The proposal that the Nation retain 9% of the current 21% VAT generated concern among provincial economic authorities, who demand greater clarity regarding the changes and their fiscal repercussions. Provincial officials insist on the need to know the details of the proposal and advocate for prior consensus before its implementation to avoid negative impacts on local finances.
Alejandro Abraam, Minister of Treasury and Finance of Chaco, agreed on the importance of simplifying the tax scheme but called for more information, especially in a context where informality is a challenge to be resolved. Meanwhile, Pablo López from the province of Buenos Aires criticized the lack of concrete information and the need to understand the steps to be taken by the provinces.
The discussion surrounding the VAT reform highlights the provincial demand for a transparent dialogue and the presentation of a detailed plan that allows for an orderly and agreed fiscal transition. The ministers emphasize the importance of a broad and planned debate that guarantees fiscal balance at all governmental levels, without setbacks in previous processes.
