Milei announces a historic 90% reduction in taxes in Argentina

Argentinian President Javier Milei celebrated his first year in office with a speech announcing a historic 90% reduction in national taxes. During his speech, he highlighted the progress achieved in 2024 and presented an ambitious economic and political agenda for the coming year.

Tax reform: The central announcement

The highlight of the speech was the tax reform designed to drastically reduce national taxes and return tax autonomy to the provinces. According to the president, this measure will encourage competition between regions, attract investments, and promote economic growth.

"My team is finishing these days a structural tax reform that will reduce by 90% the amount of national taxes and will give back to the provinces the tax autonomy they should never have lost," he said.

The president also announced that in 2025, he will eliminate exchange control, allowing citizens to operate with the currency of their choice, except for the payment of taxes, which will continue to be made in Argentine pesos.

Boosting investment and international trade

Milei stressed that his administration has already received requests for investments of more than $11.8 billion (USD) and that important capital flows are expected in strategic sectors such as mining, energy and technology. He also announced a Mercosur reform project that includes eliminating internal tariff barriers and negotiating a free trade agreement with the United States.

Reduction of public spending and deregulation

In line with his vision of a more efficient state, the president reiterated his commitment to reducing public spending significantly. He promised to audit and eliminate non-essential state agencies and enterprises. "We are going to carry out an inclement audit to move forward with the deepest public spending reduction in Argentine history, which will bequeath us a smaller, more effective and cheaper state for all tax payers," he assured.

Achievements of the first year: Deregulation and economic freedom

Milei also highlighted the progress made in his first year in office, especially in terms of deregulation and improving the economic freedom index.

"We are getting closer and closer to inflation being just a bad memory," he said. "We eliminated more than two regulations per day, we freed up the skies. We have carried out the biggest structural reform in our history."

He also emphasized the country's progress in economic freedom rankings: "A year ago, we were among the worst 35 countries in the world in this regard, and today we are in the middle. And most importantly, we managed to protect the most vulnerable sectors while implementing the necessary adjustment."