The Government of Argentina has announced that it will dissolve the Federal Public Revenue Administration (AFIP), the country’s tax collection entity, and will create a new tax and customs control body.
“Within the framework of the reduction of the State and the elimination of inefficient structures, it will proceed to dissolve the Federal Administration of Public Revenues (AFIP),” the Office of President Javier Milei announced this Monday in a statement.
The Executive reported that it will create the Customs Collection and Control Agency (ARCA), an organization with a “simpler, more efficient, less expensive and less bureaucratic” structure.
According to the Argentine authorities, this measure will allow the State to save 6.4 billion pesos (6.3 million dollars / 5.7 million euros) annually, thanks to the 34% reduction of the current management structure of the Treasury.
As part of this decision, 3,155 AFIP agents will be fired. The Government defends that they entered the Treasury irregularly during the Executive of Peronist Alberto Fernández (2019-2023). The number of agents that will be dismissed is equivalent to 15% of the current Treasury staff.
The Administration of the far-right Milei, which since last December has maintained a severe fiscal adjustment and policies to reduce the size of the State, alleged that the measure announced this Monday is an “essential step” to “dismantle the unnecessary bureaucracy that has hindered economic freedom and commercial of the Argentines.”
“The creation of ARCA aims to reduce the State, eliminate unnecessary positions, professionalize the entity, destroy corrupt circuits, and improve the efficiency of customs collection and control, eliminating the privileges of the past. and optimizing public management,” the statement says.
The direction of ARCA will be headed by Florencia Misrahi, who has been head of the AFIP since last January.
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