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🇵🇾 Paraguay /Economy & Trade

Argentina's economy minister signals another tax cut in 2027

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire From a news agency New plan
  • Argentina plans to cut the tax burden by one percentage point of GDP in 2027, Economy Minister Luis Caputo said.
  • Caputo said the government would seek broader tax reform later and was preparing measures to strengthen its finances ahead of the 2027 presidential election.
  • He defended the government's fiscal and trade policies and rejected calls for state compensation to banks facing rising loan delinquency.

Argentina's government plans to cut taxes again next year, Economy Minister Luis Caputo said, extending a policy that has already reduced the tax burden by three percentage points since Javier Milei took office.

We have been lowering taxes as the primary surplus allowed us to, we reduced spending by 30 percent in real terms, cut taxes by three points and next year we will cut another point

· Luis CaputoArgentina's economy minister described the government's fiscal policy and planned 2027 tax reduction.

Speaking at the 47th annual convention of the Argentine Institute of Finance Executives in Puerto Iguazú, Caputo said the government would reduce taxes by another percentage point of gross domestic product in 2027. He said the cuts had followed reductions in real public spending and depended on the primary fiscal surplus.

Caputo said a comprehensive tax reform would require coordination with Argentina's provinces because taxes account for a large share of their revenue. He indicated that broader reform would be left for a possible second Milei term.

We have the swap with China, the swap with the United States and we are working on other things

· Luis CaputoCaputo cited financial tools the government was using or developing ahead of possible currency volatility.

The minister said the government was in a much stronger political and economic position than it had been in September 2025, when inflation had accelerated and reached 22 percent during the first nine months of the year. He also said officials were developing new tools to strengthen Argentina's finances against possible currency volatility ahead of the 2027 presidential election.

for the worst possible situation

· Luis CaputoHe described the economic team's preparations for possible financial turbulence.

"We have the swap with China, the swap with the United States and we are working on other things," Caputo said, without providing details. He said some measures could be announced soon and that the economic team was preparing "for the worst possible situation." Caputo also rejected state compensation for banks facing increased delinquency, saying, "Delinquency will fall," and defended trade openness while criticizing the previous model for relying on deficits, monetary issuance and a shrinking domestic market.

Delinquency will fall

· Luis CaputoCaputo rejected the need for state compensation to banks facing higher loan delinquency.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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