Milei Shuts Down Argentina's Tax Agency

In Argentina, President Javier Milei has initiated a significant reform by announcing the shutdown of the country's tax agency, a controversial decision aimed at reducing government expenditures and bureaucratic inefficiencies. The Administración Federal de Ingresos Públicos (AFIP), which is deemed excessive and politicized, will be replaced by the Agencia de Recaudación y Control Aduanero (ARCA). This transition is expected to streamline tax collection and customs control effectively, promoting economic freedom and reducing the state’s role. A major aspect of this overhaul is the anticipated reduction in AFIP's staff, with over 3,000 jobs set to be cut. These workers were reportedly hired through questionable processes during the last administration. Positions at both higher and lower levels will see a significant decrease, including a 45% reduction in senior roles. This restructuring aims to save around $6.4 million annually, further establishing Milei’s commitment to addressing the fiscal deficit. Milei’s government argues that previous bureaucratic systems have stifled economic growth and resulted in corruption within tax collection. The reforms reflect a broader strategy to implement sweeping changes across Argentina's financial landscape, including the devaluation of currency and cuts to state subsidies. This governmental shift is part of Milei’s ambitious plan to demystify regulations, enhancing competitiveness and improving public management. Through this initiative, the administration hopes to foster a more efficient and transparent system for all citizens.