Argentine President Javier Milei delivered a televised speech on the first anniversary of his inauguration, announcing a package of political, fiscal, and economic policies, including the cancellation of 90% of current national taxes and plans to lift currency controls by 2025.
Miller's speech marks a complete shift in the country's policy direction for decades, aimed at attracting foreign investors who have long avoided the Argentine market.
Cancel 90% of taxes
One of the major highlights of Miller's speech was that Argentina will promote significant tax cuts next year. Miller announced the cancellation of 90% of national taxes, aiming to promote business activities and reduce the underground economy that develops under heavy taxes.
In addition, Millet also promised to allow local governments to independently manage taxes and restore their fiscal autonomy. He stated that next year, he will see real tax competition among provinces to see who can bring in more investment.
Millet's package of reforms also includes the lifting of currency controls by 2025, allowing US dollar transactions to be used for all businesses previously only allowed for Argentine peso transactions, and emphasizing that from 2025 onwards, currency controls "will end forever".
It is reported that the current currency control has been implemented since 2019, stipulating that Argentines can legally purchase $200 per month at banks. Miller said, "(Removing currency controls) means that every Argentine can buy, sell, and charge in US dollars or any other currency, but taxes will still be paid in pesos
In terms of international trade, Miller's team has secured $11.8 billion in new investment commitments in the mining, energy, and infrastructure sectors. These commitments indicate that people are increasingly confident in the direction of Argentina's economy, although the challenges remain significant.
In addition, Millet is also seeking to negotiate a free trade agreement with the incoming Trump administration. This move may open up new markets for Argentina's exports and bring in more foreign investment.
Obstacles ahead
However, Miller's path to reform faces serious obstacles. During the year in which Millais was in power, his government reduced public spending by nearly one-third and abolished controls and subsidies on public transportation, heating costs, and video prices, causing more people to face economic difficulties and 57% of Argentinians to fall into poverty.
Millet's approach is widely known as' shock therapy ', and Millet believes that by removing obstacles that hinder the Argentine economy, short-term pain will lead to sustainable growth.
The fact is that over the past year, the government's tightening measures have reflected its positive side, such as a decrease in inflation and relatively stable prices in recent months.
According to the latest poll, about 56% of Argentinians hold a positive attitude towards President Millet. Although his statements during the campaign were more radical, his policies have become much more rational and pragmatic since he took office.
After Miller's latest national speech, Federico Sturzenegger, the Minister of National Transformation of Argentina, said, "In order to reduce the tax burden by 90%, we must cut spending by 90%. Currently, we have already cut by 30%, which is historic