Milei's Government Announces Major AFIP Reforms

President Javier Milei's administration is set to dissolve the AFIP and create the new ARCA agency, promising significant annual savings and a reform of tax administration in Argentina. Amidst criticism and structural changes, the leadership transition indicates a strategic shift towards a more efficient governmental approach.


Milei's Government Announces Major AFIP Reforms

The recent appointment of Andrés Vázquez, who had been questioned for his previous management at the AFIP during Ricardo Echegaray's time, has generated debate. He is accused of having promoted an operation against the Clarín Group in 2009 and of having undeclared foreign accounts. Despite the criticism, there is strong defense of this choice in the Casa Rosada.

In the midst of a restructuring in the Government, the creation of the Revenue and Customs Control Agency (ARCA) is just the beginning of a series of planned changes. The President, his sister Karina Milei, and advisor Caputo form the 'iron triangle' that has been working on this ambitious plan. The importance of appointing people with experience and knowledge in the area to carry out these reforms is highlighted.

The dissolution of the AFIP and the creation of the ARCA entails a projected savings of 6.4 billion pesos per year. About 3,155 employees hired in the last year are expected to be laid off. The implementation of this second stage will be the responsibility of Andrés Vázquez and José Veliz, who will have to execute the plan outlined by Milei.

During the process of changes, there has been absolute secrecy to avoid leaks that could jeopardize the success of the project. Recently, concrete signals of the planned modifications were given in the Casa Rosada. The reference to the 'massistas' has created some controversy, although it has been clarified that it is not aimed directly at the leader of the Frente Renovador, Sergio Massa.

In this context, the protests from AFIP and Customs workers are expected to be the first challenges for Vázquez and Veliz. The intention is to purge and end irregular practices in both institutions. Amid these changes, there is an aim to deactivate part of the team left by the former Minister of Economy during the presidential campaign, focusing on a total renovation of the management mechanisms in the area.