Economy Minister Luis Caputo has been proposing a division of the VAT revenue, with the national government collecting a portion (between nine and ten percentage points of the current 21 points) and the remainder going to the provinces, which would then determine their own percentage. The objective—as President Javier Milei announced at the opening of the legislative year—would be to create “tax competition” among the provinces. Caputo is also urging the provinces to reduce their spending.

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