May 09th, 2025
1. Javier Milei and Luis Caputo spoke at the Economic Latam Forum 2025
Argentina’s President, Javier Milei, and the Minister of Economy participated in the Economic Latam Forum 2025. The minister not only focused on the need to mobilize the dollars “hoarded” by Argentines, but also offered an optimistic outlook on the country’s economic future. He highlighted that, if Argentina achieves an annual growth of 8%, the government would be able to return US$ 550 billion. Caputo emphasized that the key to achieve this growth scenario lies in the implementation of sound economic policies and in the creation of a favorable environment for investment. On his part, Milei blamed the PRO for the failure in the treatment of the “ficha limpia” law.
2. The National Government eliminated duties on industrial exports
The National Government eliminated export duties on 88% of industrial products. Now, 4,411 products will not have to pay withholdings of between 3% and 4.5% on the value of the goods. By means of Decree 305/25, the National Government eliminated export taxes on processed products, which will make local industry more competitive and encourage exports. The measure will initially benefit 3,580 companies, almost 40% of those exporting in Argentina.
Secretaría de Comercio: El Gobierno Nacional eliminó retenciones a las exportaciones industriales
3. The Senate did not approve the “ficha limpia” bill
After a long debate crossed by the figure of Cristina Kirchner, in which the ruling party and its allies took for granted that the project was going to be sanctioned and Kirchnerism was resigned, the turn of the two senators from Misiones caused the failure of the project of Ficha Limpia by one vote, which goes back to square one and cannot be dealt with for the rest of the year. In this way, Cristina could present herself as a candidate in the national elections of October, although for now she seems to be determined to fight for a seat in the Buenos Aires Legislature. As it is an electoral reform, the initiative needed an absolute majority of half plus one of affirmative votes: 37 affirmative votes. It had 36 in favor. The missionaries of the Frente Renovador de la Concordia – which responds to Carlos Rovira – are Sonia Rojas Decut and Carlos Arce, and they voted against together with the 33 legislators present from Unión por la Patria, which added up to 35 rejections.
4. Governors’ Summit in Entre Ríos
Six governors of different political stripes shared this Tuesday the meeting of the Federal Investment Council held in Paraná, Entre Ríos. The host was Rogelio Frigerio, but he was accompanied by Axel Kicillof (Buenos Aires), Maximiliano Pullaro (Santa Fe), Raúl Jalil (Catamarca), Ignacio Torres (Chubut) and Sergio Ziliotto (La Pampa). Although it was expected that there could be a common criticism signed by all of them against the government’s project to apply a super VAT and to formulate changes in profits, it did not exist. There were some specific expressions in each of the presentations made by the provincial leaders, but not a joint document.
5. Tax collection grew above inflation, but the elimination of the PAIS Tax puts pressure on the national accounts
In April 2025, Argentina’s tax collection reached AR$13.68 billion, marking a year-on-year increase of 57.9%, outpacing the 55.9% inflation recorded through March. This growth was driven by higher revenues from exports, income tax, social security contributions and fuels. In addition, the elimination of the exchange rate hedge and the implementation of a banded floating regime as of April 14 contributed to this positive fiscal performance. However, the elimination of the PAIS Tax in December 2024 has negatively affected the national government’s revenues. This tax, which levied the purchase of foreign currency, represented approximately 1.1% of GDP and was not co-participated with the provinces. In April, while the provinces received $4.33 billion (a real increase of 9.8%), the National Administration recorded revenues of $5.4 billion, with a real increase of only 2%, indicating a loss of resources for the central government.