Milei's government dissolved AFIP and created a new 35% smaller agency

Today, the Government of Javier Milei announced a transforming measure in public management: the dissolution of the Federal Administration of Public Revenues ( AFIP) and the creation of the new Agency of Collection and Customs Control ( ARCA).

This change is part of the government's effort to reduce the size of the State and eliminate inefficient structures that have harmed economic growth and commercial freedom in the country.
The creation of ARCA represents a significant restructuring in the way government revenues and customs control are administered.

According to the press release, the new agency will have a simpler and more efficient structure, which will allow a 45% reduction in senior authorities and a 31% reduction at lower levels, resulting in a total elimination of 34% of the current staff of the former AFIP.
This change will not only alleviate the bureaucratic burden faced by taxpayers and businesses, but will also generate an estimated annual savings of 6.4 billion pesos.

One of the highlights of this reform is the dismissal of 3,155 agents who were irregularly hired during the last Kirchner administration.

This is equivalent to 15% of AFIP's current staff and reflects the commitment of Milei's government to clean up the public administration of clientelist practices and nepotism. The elimination of these unnecessary positions is a fundamental step towards the creation of a more professional and efficient entity, capable of responding to the needs of Argentine citizens and businesses.

The ARCA not only seeks to simplify public management, but also aims to eliminate privileges and improve efficiency in customs collection and control. This focus on transparency and efficiency is fundamental to restoring citizens' confidence in public institutions and fostering an environment conducive to economic development.

The communiqué also highlights important changes in the remuneration of the new agency's senior management. The Hierarchy Account, which allowed for exorbitant salaries at AFIP, will be eliminated.
The salary of the head of ARCA will be reduced from approximately 32 million pesos to approximately 4 million pesos, bringing her remuneration to that of a Minister of the Nation.

Likewise, the salaries of the Directors of the General Tax Directorate (DGI) and the General Customs Directorate (DGA) will also be adjusted to more reasonable amounts, thus eliminating the perception of privileges in the public administration.

Posted Using InLeo Alpha