Milei Shuts Down Argentina’s Tax Agency
Argentine President Javier Milei announced plans to shut down the country’s tax collection agency, a bold step in his ongoing effort to slash government spending and bureaucracy.Â
On Monday, presidential spokesperson Manuel Adorni confirmed that the Administración Federal de Ingresos Públicos (AFIP), Argentina’s tax bureau, will “cease to exist.” It will be replaced by a newly formed agency, the Agencia de Recaudación y Control Aduanero (ARCA), which will assume some of its functions.
“Throughout its existence, this agency has functioned as a political cash box and, as we all know, many Argentines have been subjected to absolutely immoral persecutions,” Adorni’s statement reads. “No State bureaucrat should be delegated the power to tell an Argentinean what to do with his property.”
The closure of AFIP is framed as “essential to dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines.” ARCA, the new agency, will embody a “simple, more efficient, less costly, and less bureaucratic” approach to tax collection and customs control.
ARCA “aims to reduce the State, eliminate unnecessary positions, professionalize the agency, dismantle corrupt networks, and improve the efficiency of revenue collection and customs control by removing privileges of the past and optimizing public management,” the statement continues.Â
According to Bloomberg LÃnea, 80 percent of AFIP’s 2024 budget was allocated for salary payments. With the restructuring, a significant reduction in staff
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