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Montevideo, November 19th 2017 - 03:18 UTC

Macri vows reforms to lower taxes and achieve fiscal balance

Tuesday, October 31st 2017 - 07:43 UTC
Full article 7 comments
“We need lower taxes, more public works, and all this we need to achieve with fiscal balance,” Macri told a gathering of lawmakers, governors, union leaders “We need lower taxes, more public works, and all this we need to achieve with fiscal balance,” Macri told a gathering of lawmakers, governors, union leaders

Argentina's President Mauricio Macri vowed to press ahead with reforms to the country's tax, labor and retirement systems in a speech on Monday, a week after his “Let's Change” coalition swept to victory at the polls in midterm elections.

 The government will present a tax reform proposal this Tuesday or Wednesday, and an amnesty plan for companies that hired workers informally in the coming days, Macri said. He added that the government would convene a commission to propose changes to the retirement system in coming weeks.

The speech marked a roadmap for the second half of Macri's four-year term, as he seeks to implement business-friendly reforms to attract investors who avoided the country during more than a decade of populist rule.

“We need lower taxes, more public works, and all this we need to achieve with fiscal balance,” Macri told a gathering of lawmakers, governors, union leaders, judges and others.

Investors have been encouraged by the reforms Macri has implemented since taking office in December 2015, including lifting foreign exchange controls, settling with holdout creditors, and lowering export taxes.

But significant investment has not arrived. Companies have demanded lower costs, while credit agencies are concerned about a deep fiscal deficit.

Macri's coalition swept the five most populous areas in midterm elections, giving him a broader mandate to pass reforms, though it still lacks majorities in both chambers of Congress.

Macri said his government had reduced the country's tax burden, and wanted to make the system “simpler, clearer, and fairer.”

He reiterated the government's aim of slashing Argentina's fiscal deficit by one percentage point of gross domestic product per year. And he also vowed to reform the country's retirement system, a large driver of government spending.

“We need to start a mature and honest conversation about our retirement and pension system,” Macri said. “Our retirement system hides serious inequities, and it is not sustainable.”

While Macri has said he does not plan major changes to the country's labor code, he has said the government plans to provide incentives to companies to formalize undeclared workers and work with unions in specific sectors to lower costs.

Categories: Economy, Politics, Argentina.

Top Comments

Disclaimer & comment rules
  • Lightning

    BK, DT, and EM,

    Kirchnerism is as rapidly becoming irrelevant as the old woman herself.

    Oct 31st, 2017 - 10:22 pm +1
  • DemonTree

    @Lightning
    Why did you bring her up then? This article and all the comments before yours were about Macri.

    Oct 31st, 2017 - 10:41 pm 0
  • golfcronie

    Vultures? If someone said you could get 15% on lets say $ 5 billion in 3 years time, would you not take umbridge if they haggled about paying you, I know I would. They are not vultures, they are business men who want a return on their capital.If you had the money to lend you ALL would do the same. Hypocrites.

    Nov 03rd, 2017 - 08:29 pm 0
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