Industry protests, falling tax revenue place economic activity in the spotlight
Economy Minister Caputo responded to critics by saying that most understand that change is ‘necessary, even though it’s difficult’ La entrada Industry protests, falling tax revenue place economic activity in the spotlight se publicó primero en Buenos Aires Herald .
President Javier Milei's economic plan faces criticism from industry leaders amid declining tax revenue and stagnant economic growth. August's tax revenue reached AR$20.51 trillion, a 33.5% year-over-year increase, but inflation-adjusted figures show a 0.15% decline. The UIA reports the industry is 10% below 2022 levels, with sector declines ranging from 25 to 30 percentage points since August 2023.
Over 90,000 salaried jobs have been lost in manufacturing since Milei's inauguration. Economy Minister Luis Caputo acknowledges the need for economic model changes but insists most business leaders agree. Tax revenue has fallen in six consecutive months, with a 4% real decline in 2026 compared to 2025. Export taxes improved, but personal property, lease, and service taxes dropped 3% in real terms.
Credit and debit card transaction taxes plunged 9% in real terms. Social Security revenue, an employment indicator, fell 1% year-over-year. Business leaders, particularly the UIA, demand respect and urge a "bridge" between the past and the competitive economy Argentina aims to build. Critics, including Milei, have insulted industrialists in the past.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.