The final version of the new Base Law and the fiscal chapter are currently being defined among the highest terminals of the libertarian administration. The Minister of the Interior, Guillermo Francos, anticipated that the government headed by Javier Milei is working on raising the minimum non-taxable income tax, one of the most discussed points of the Base Law, and clarified that it will not be retroactive.
“We are going to increase the profit floor proposal, the Minister of Economy is finishing analyzing it to see how it impacts the law and the difficult zero,” he stated in an interview with the program If It Passes It Passes on Radio Rivadavia, and added: «Surely, the floor will be between 1.2 and 2 million, and The scales will be given progressively.
The restitution of the fourth category, the amount of which is not yet fully defined, could place the new floor to pay the tax between $1,500,000 and $2,000,000, as reported by LA NACION from the official ranks. The governors who spoke with the Casa Rosada, part of whom met, They had access to a greater precision: it would be between $1,600,000 and $1,800,000.
In both cases this is a substantial difference with the first option that was considered by the Government, at the beginning of the year, and which was at 1.2 million pesos. Something that was definitively ruled out this Friday night by the head of the Economy portfolio himself. «It has to have a reasonable floor. “It is not going to be $1,200,000,” Caputo assured. Currently, the minimum profit floor covers 2,300,000 people.
In the text of the tax chapter that includes Profits, the legal loophole that initially raised doubts about the possibility that those who return to pay taxes would have to pay the retroactive tax for the last quarter of last year will be completely closed. “The circle is closed and no one will pay retroactively,” stated some of the sources consulted. «In the text the error of (Sergio) Massa is corrected. “He is settled,” they added. It had been Minister Guillermo Francos, who had raised that possibility.
Although the non-taxable minimum is not defined, it is not possible to know exactly the number of people who should pay again, Tax experts’ estimates suggest that it would be around or slightly below 800,000 taxpayers. who stopped paying it with the electoral decision of Sergio Massa, in his dual role as Minister of Economy and presidential candidate.
Added to the calculation scenario of the universe reached by the measure is the historical lack of statistics on how many people pay Earnings in each period. AND The estimate is also made difficult by elements such as deductions and people’s marital status. that can eventually mean that, despite their salaries, they do not end up paying the tax.
«It is finishing polishing. It is a discussion between the governors of the north and those of the south. “We have to find the balance,” a very high government source told this newspaper about the floor that will be defined in the next few hours. “It is to solve a problem of the provinces”he completed and highlighted that there were still pending talks with some of the provincial leaders, although in terms of meetings, Thursday’s would have been the last.
At the Government headquarters they detailed in the last few hours that Profits, which from now on will be called “personal income tax”, “will have less impact than was assumed” and highlighted that “the key is progressivity” with scales that would go from 5 to 35% depending on income. «It will not have a strong impact on salary. In some cases it will be around $20,000,” they detailed.
Within the tax chapter there will also be money laundering, one of the points on which there are still not many details. In fact, they don’t even have them. governors of Together for Change who this Thursday met with the Minister of the Interior, Guillermo Francos, and the Chief of Staff, Nicolás Posse, at Casa Rosada. The topic generates many expectations regarding its scope.
The chapter will also include modifications to exceptions to the tax system and changes to taxes on Personal Assets, where, according to sources with access to the subject, “Go up the scale and change the formula.” Other internal taxes, such as that applied to tobacco, will also register changes.
The draft Base Law and the fiscal chapter would reach Congress together. Regarding the Bases law, what was initially ordered is taken and a new opinion will be made on that and new articles that were not in that first version will be written, detailed the sources consulted. It will go together with the fiscal chapter, but with a differentiation because the latter did not have a parliamentary procedure as it did with the first. “They will go hand in hand, but they are two different laws”they describe.
The Base Law, which will have between 10 and 12 chapters or titles, will include: State reform, delegated powers and companies to be privatized. Everything related to the carburizing and mining regimes, everything related to the energy sector, and the large investment regime. All pointing to economic development via deregulation and promotion regimes.
The plans also include the labor reform chapter that was initially incorporated in DNU 70/2023, which was stopped by the justice system, after a series of protections. The inclusion was requested mainly by the dialogue opposition, several of whose main representatives the government received at the Interior headquarters over the last few weeks. Everything indicates that it may be inside, but in Balcarce 50 they clarify that it is not yet included. The opposition will send it in the next few hours and the government is clear in pointing out that “if what they send is aligned, there will be no problem in introducing it as is.”
The idea is that what is included has the possibility of passing the legislative filter. For this, substantial modifications could be introduced, such as leaving out the elimination of mandatory union contributions and the prohibition of protests. The text would maintain aspects of the DNU version as a replacement for the compensation system for a severance fund, the extension of the trial period and the reduction of fines for non-registration.
The drafts of the Base Law and Fiscal Chapter will be sent to governors and block heads as soon as they are finished with the idea of closing everything and complying with the times proposed weeks ago by Balcarce 50: that on the 17th they will enter the committee, on the 24th they will be discussed in the Lower House and by May they will be in the Senate.
With information from LA NACION and Noticias Argentinas.