Reform in the AFIP: Creation of ARCA

The Argentine government creates the Revenue and Customs Control Agency (ARCA), replacing the AFIP to improve efficiency and reduce operational costs.


Reform in the AFIP: Creation of ARCA

The Argentine government announced the creation of the Revenue and Customs Control Agency (ARCA) to replace the AFIP, the country's tax administration. This new entity will be led by Florencia Misrahi, who previously headed the AFIP. With this measure, an annual savings of $6400 million is projected by eliminating 3155 positions that are considered to have been incorporated irregularly in the previous administration.

One of the most notable measures is the reduction of 3000 employees in the AFIP, representing a 15% adjustment in the agency's staff. These actions are part of a broader plan for state restructuring that seeks to reduce the size of the state to make its operation more efficient. The creation of ARCA aims to simplify the state structure and reduce operational costs, seeking to improve transparency and efficiency.

Federico Sturzenegger, Minister of Deregulation and State Transformation, confirmed these reforms which also include changes to the tax system affecting Argentine football. With this decision, the government plans to reduce public positions in the AFIP by 34%, eliminating unnecessary hierarchies to improve tax and customs collection. Sturzenegger emphasized that the simplification policy seeks to eliminate bureaucratic barriers and reduce public spending, arguing that each additional expense is a tax for taxpayers.

The minister stressed the importance of deregulation and administrative efficiency in the fight against corruption, citing unnecessary bureaucracy examples those practices that increase import costs and foster corruption. The creation of ARCA means the disassociation of agents and the consolidation of a new revenue agency with the purpose of modernizing and transparenting the country's tax and customs administration.