What is in Javier Milei's sweeping Argentina reform bill?
By Lucinda Elliott and Jorgelina do Rosario
(Reuters) — Argentine President Javier Milei has sent a reform bill to Congress proposing far-reaching changes to the country's tax system, electoral law and public debt management.
The push to reshape South America's second-largest economy with an omnibus bill requires approval from lawmakers in both chambers of Congress, where Milei's coalition holds a small minority of seats.
WHAT ARE THE MAJOR REFORMS IN THE BILL?
The bill has 664 articles that range from allowing the privatization of 41 public companies, eliminating the presidential primary vote and introducing a broad 15% tax on most exports.
The government also proposed raising export taxes for soy and its derivatives to 33% from 31%. Argentina is the world's No. 1 exporter of processed soy.
The bill aims to introduce tax amnesties for Argentines, allowing them to register and repatriate some undeclared assets such as stocks, cryptocurrencies and cash.
A reform to public debt management would remove limits on sovereign bonds issued overseas and eliminate some conditions on restructuring debt.
Changes to Argentina's proportional representation electoral system would raise the number of lawmakers in each district to one per 180,000 inhabitants, from one per 161,000 inhabitants. This would give more power to the populous province of Buenos Aires in the lower house of Congress, according to a note to clients by consultancy firm 1816.
Among the more controversial reforms cited, is a call to cede some legislative power to the presidency until Dec. 31, 2025, with the option to extend these for a further two years.
WHAT ABOUT MILEI'S PRESIDENTIAL DECREE?
Markets cautiously welcomed a presidential decree from Milei last week
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