Milei Abolishes Argentina’s Tax Collection Agency
"We are pleased to announce that AFIP will cease to exist starting today," said government spokesperson Manuel Adorni.
The Argentine government, under President Javier Milei, has officially decided to dismantle the Administración Federal de Ingresos Públicos (AFIP), the country’s primary tax collection agency.
“We are pleased to announce that AFIP will cease to exist starting today,” said government spokesperson Manuel Adorni in a press conference at the Casa Rosada.
AFIP, which was established in 1996 during Carlos Menem’s presidency, is being replaced after 28 years of operation. As part of the government’s effort to streamline public administration, a new entity, the Agencia de Regulación y Control Aduanero (ARCA), will be created. According to Adorni, ARCA will feature a simpler, more efficient, and cost-effective structure, focusing on customs regulation and control.
The reorganization will involve significant cuts in personnel. Adorni revealed that 45% of senior management and 35% of lower-level positions will be eliminated, amounting to a total reduction of 34% of public sector jobs. Approximately 3,100 employees, many of whom were hired irregularly under the previous government, will be reassigned or let go.
Additionally, the move is expected to save 6.4 billion pesos (around $6.5 million). The new agency will report to the Minister of Economy, Luis Caputo. Adorni also confirmed that the special salary bonuses for senior officials would be removed, aligning their pay with that of ministers and state secretaries.
The leadership transition includes Florencia Misrahi overseeing ARCA, while Andrés Gerardo Vázquez will take charge of the Dirección General Impositiva (DGI). Meanwhile, José Andrés Velis, a veteran with over 30 years of experience, will head the Dirección General de Aduanas (Customs), replacing Eduardo Mallea.
This major restructuring underscores Milei’s vision of reducing bureaucracy and public spending, marking a significant shift in Argentina’s approach to state governance.
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