Proposed Palliative and Fiscal Measures in Congress: A Closer Look at the Controversies and Debates
On Thursday, in the debate on the draft Law on Palliative and Relevant Fiscal Measures sent to Congress by the ruling party, opposition 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 tax package includes sessions with changes in Profits, Monotribute, Personal property, and money laundering, among other reforms.
The proposal aims to complement the Base Law and will be debated simultaneously. The ruling party plans to have both initiatives approved in the first days of May to submit them to the Senate for sanctioning before the 25th, when it is expected that the May Pact with provinces will be signed. The Government believes that inflation will slow down in coming weeks and has confirmed that it will adjust income tax annually based on consumer price index.
During discussions in Congress, various legislators raised concerns and made requests to government officials. Some suggested quarterly updates instead of annual ones for Income Tax while others questioned eliminating tobacco tax and other expenses related to taxation. The project includes changes to personal property tax, money laundering asset regularization regime and updates Simplified Regime for Small Taxpayers (Monotax). Legislators from different political parties discussed transparency issues concerning fairness accountability within proposed fiscal measures aiming at creating a different culture where everyone has equal obligations rights in fiscal matters.
Overall discussion centered on proposed reforms including changes several taxes as well as streamlining procedures within existing laws aimed at improving efficiency transparency accountability within country’s financial system
