Overview
- Economist Emmanuel Álvarez Agis proposes scrapping the bank debits-and-credits levy and imposing about a 10% charge on cash withdrawals, which he says consumers can avoid by paying electronically.
- President Javier Milei rejected the idea on X with harsh language and government officials warned of banking instability, regressive effects on cash‑reliant groups, and potential runs on deposits.
- Agis argues the scheme would not raise overall tax pressure but would redistribute it, pairing the change with lower taxes for SMEs to support formalization.
- Analysts note the cheque tax generated roughly $11.3 trillion between January and October, about 7.5% of ARCA revenue, making immediate replacement technically and politically difficult.
- The debate was amplified by a short clip posted by legislator Agustín Romo and shared by Milei, and there are no legislative steps as the broader tax reform is slated for discussion in 2026.