IMF tax reform plan meets resistance from Argentine business groups

The International Monetary Fund (IMF) has outlined a package of tax reforms for Argentina, calling for a broader income‑tax base that would bring roughly 20% of workers under the personal income‑tax net, higher contributions from monotributists, an expansion of VAT to currently exempt items, and a streamlined corporate tax rate of 30%. The proposals were issued after a new USD 1 billion disbursement as part of a USD 20 billion loan programme agreed under President Javier Milei’s government.

The Confederación Argentina de la Mediana Empresa (CAME) criticised the IMF’s recommendations, arguing they are regressive and place the burden on salaried employees, small contributors and consumption. CAME highlighted that the main obstacle to competitiveness lies in the sub‑national tax system, especially provincial gross‑income taxes (Ingresos Brutos) and diverse municipal fees that can add 2%‑6% of a company’s sales and create a cascading tax effect. The business group called for a deep overhaul of provincial and municipal taxes rather than the IMF‑suggested national measures.