On Thursday, the debate on the proposed draft Law on Palliative and Relevant Fiscal Measures was held in Congress. During this discussion, opposition parties pressured the Government to make changes related to the update of the Income Tax. They emphasized cutting tax expenditures, eliminating exemptions for judges from paying Profits, modifying internal taxes such as tobacco, and questioning tax benefits in Tierra del Fuego. The Government is confident that inflation will slow down in the coming weeks and has confirmed that the update of the Income Tax will be annual, adjusted by the Consumer Price Index.
The proposed tax package includes several reforms such as changes in Profits, Monotribute, Personal property, and money laundering, among others. This initiative aims to complement the Base Law and will be debated simultaneously. The ruling party aims to have both initiatives approved in the first days of May to submit them to the Senate for sanctioning before the 25th, which is when it is expected that a May Pact with provinces will be signed.
During the debate, various legislators raised concerns and made requests to the Government. Some suggested quarterly updates rather than annual ones for the Income Tax while others questioned eliminating certain taxes or expenses. The project also includes changes to Personal Property Tax, Money Laundering Asset Regularization Regime, and updates to Simplified Regime for Small Taxpayers (Monotax). The Government emphasized creating a different tax culture where everyone has similar obligations and rights in fiscal terms.
In conclusion, Congress’s discussions focused on proposed tax reforms including changes to various taxes and measures aimed at streamlining