Argentina needs more structural reforms to taxation, IMF says

Argentina ​needs to ​execute structural reforms to ‌its tax ​system to advance its fiscal consolidation, a senior ‌International Monetary Fund official said on Wednesday, adding that the country should remove exemptions to ‌its value-added tax. Era Dabla-Norris, deputy director ‌of the IMF's Fiscal Affairs Department, said that fiscal discipline has been a "linchpin" of its ⁠IMF ​stabilization ⁠program, but more steps are needed to improve tax ⁠and spending efficiency.

Key reforms needed by Argentina ​include "removing tax expenditures, or alleviating tax expenditures, ⁠particularly VAT exemptions, normalizing fuel taxes," Dabla-Norris said. "And gradually ⁠phasing ​out other types of distortive taxes in the economy and replacing them ⁠with a tax system that is more ⁠robust and ⁠more and a more durable way of collecting revenues."