from Your News:
Argentine President Javier Milei has dissolved the nation’s Federal Administration of Public Income (AFIP), replacing it with a more efficient and cost-effective Customs Collection and Control Agency (ARCA).
By yourNEWS Media Newsroom
In a major overhaul of Argentina’s government structure, President Javier Milei announced the dissolution of the Federal Administration of Public Income (AFIP), the nation’s revenue and customs service, as part of his administration’s push to reduce state bureaucracy. The AFIP will be replaced by a new entity, the Customs Collection and Control Agency (ARCA), which is designed to be more efficient, less costly, and significantly less bureaucratic, according to the administration.
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The announcement was made during a press conference on Monday by presidential spokesman Manuel Adorni, who emphasized that the change was a key step in President Milei’s efforts to streamline government operations and cut unnecessary costs. “[AFIP] will cease to exist. In its place, the Customs Collection and Control Agency will be created, with a simplified structure,” Adorni told reporters, as reported by La Nación.
The restructuring will result in the elimination of 45 percent of senior positions and 31 percent of lower positions, ultimately reducing the agency’s total workforce by 34 percent. These changes are expected to save the Argentine government approximately 6.4 billion pesos annually (about $6.5 million), as reported by Infobae.
Adorni also revealed that approximately 3,100 AFIP employees who were irregularly hired during the previous administration under former President Alberto Fernández will be relocated to other positions within the government. The dissolution of AFIP, he said, was prompted by the organization’s inability to effectively respond to tax, customs, and social security demands. “The measure is based on the current oversizing of its structure, which has shown limitations in the capacity to respond in an agile and efficient manner,” Adorni explained, adding that the agency’s inefficiencies were adversely affecting the administration of public resources.
The change will also see a substantial reduction in the salaries of ARCA’s top officials. The salary of the AFIP head, currently standing at 32 million pesos ($32,500) per month, will be reduced to align with the income of a national minister, approximately 4 million pesos ($4,000). Additionally, the directors of the General Directorate of Taxes (DGI) and the General Directorate of Customs (DGA), who currently receive 17 million pesos a month, will see their salaries reduced to match that of a Secretary of the Nation.
The Argentine presidency confirmed the news in an official statement, in which it highlighted the importance of reducing bureaucracy to enhance economic and commercial freedom in Argentina. According to the statement, the salary cuts are part of a broader effort to bring transparency and accountability to public management.
President Milei has been vocal on social media, celebrating the dissolution of AFIP as a victory for individual liberty. He took to his Twitter account to post “Goodbye AFIP,” and followed up with an Instagram post featuring a chainsaw with the message “less state.” In another Instagram post, Milei shared an image of a lion drinking from a mug labeled “AFIP tears,” with his signature catchphrase, “Long live liberty, damn it!”
Milei’s reforms have been seen as part of a broader move toward a smaller state apparatus, aimed at promoting liberal economic principles in Argentina. As Adorni stated, “The Argentina of fiscal voracity is over. What belongs to each Argentine is his and no one else’s.”
