Javier Milei's ultra-liberal government in Argentina has withdrawn key tax reforms from its sweeping so-called “omnibus” law after they were rejected by the opposition, Economy Minister Luis Caputo announced on Friday.
“We have listened to everyone and actually share many of their demands,” Mr. Caputo said during a news conference.
In particular, the government will withdraw the articles on changes to the wealth tax, the tax on high incomes and the calculation of pension increases, he announced.
The so-called “Omnibus” law is a pharaonic series of deregulation or austerity reforms (originally 664 articles) touching everything from the electoral system to privatizations, from pensions to the criminal code, from education to culture to divorce. Almost a third of its provisions could not be adopted, the opposition in the House of Representatives warned.
The deletion of the tax chapter of the law “does not mean that we will renounce our commitment to achieve budget balance and our goal of zero deficit,” stressed, however, Mr. Caputo.
“We will simply give ourselves a little more time to negotiate the reforms,” he added.
In principle, a version of the text must be examined by the Chamber of Representatives from Tuesday. It then has to go before the Senate.
Mr Milei's party is only the third force in parliament, forcing the executive to compromise.