The Government of Neuquén projected to multiply its income by 300 with the RIGI and exposed Kicillof's failure

While Neuquén plans to transform a fiscal cost of just US$6 million into US$1.8 billion in royalties thanks to investments from the RIGI, the province of Buenos Aires remains stagnant under the interventionist model of Axel Kicillof. The contrast once again demonstrates that reducing taxes and offering clear rules can expand economic activity and increase state resources.

The governor of Neuquén, Rolando Figueroa, highlighted the expected results from the Incentive Regime for Large Investments promoted by the government of Javier Milei and assured that the positive fiscal impact for his province will be significant over the next four years.

“The RIGI has been extremely successful. We had a fiscal cost, due to the reduction of the Income Tax caused by the RIGI, of 6 million dollars in the next four years,” Figueroa explained. He detailed that during that same period, the Neuquén state will receive around US$1.8 billion in royalties generated by the projects that will arrive in the province.

“In those four years, royalties of 1.8 billion will be generated. That is, the 6 million lost from Income Tax is multiplied by 300,” emphasized the provincial leader.

The Neuquén case reflects one of the main foundations of the liberal economic program: lower tax pressure can incentivize new investments, expand production, and ultimately generate much higher revenue than that obtained through high taxes on a paralyzed economy.