Argentina's liberal government of Javier Miley has withdrawn key tax reforms from its massive law, after they were rejected by the opposition, Economy Minister Luis Caputo announced on Friday.
“We have listened to everyone and, in fact, we share a large part of their demands,” Mr. Caputo said during a press conference.
He pointed out that the government will specifically withdraw articles related to amending the tax on wealth and high income and calculating the increase in pensions.
The so-called “omnibus” law is a pharaonic set of regulatory or austerity reforms (664 primary articles) that touch upon everything, from the electoral system to privatization, from pensions to the penal code, from education to culture or divorce. The opposition within the House of Representatives warned that nearly a third of its provisions may not be approved.
However, Mr. Caputo stressed that withdrawing the tax chapter from the law “does not mean that we will abandon our commitment to achieving fiscal balance, to achieve our goal of zero deficit.”
He added: “We will give ourselves more time to negotiate reforms.”
In principle, the House of Representatives must study a copy of the text as of Tuesday. He will then have to appear before the Senate.
Mr Miley's party is only the third force in Parliament forcing the executive to make concessions.
