Argentina will disband the tax service. But then a new one will be created
22 October 2024 13:08
The Office of the President of Argentina has announced radical reforms to reduce the state apparatus and eliminate inefficient structures – the government has decided to dissolve the Federal Public Revenue Administration (AFIP), the Argentine tax service. This was reported by "Komersant Ukrainian"
However, the decision is not as radical as the most ardent admirers of the libertarian president would like. It is not about the complete liquidation of the tax service, but only about its reorganisation. Instead of the old agency, a new one will be created – the Agency for Tax Collection and Customs Control (ARCA).
The new agency will be simpler, more efficient, less costly and less bureaucratic. The reform envisages cutting 45% of senior positions and 31% of lower-level staff, which will reduce the structure by 34%. It is estimated that this will save around 6.4 billion pesos (approximately USD 6.4 billion) annually.
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In addition, 3,155 employees will be dismissed who, according to the current government, were illegally hired during previous governments. This represents 15% of the agency’s current staff, and the authorities consider this step necessary to combat the bureaucracy that has been holding back the country’s economic development.
The government has also decided to abolish rank bonuses for senior officials. In particular, the salary of the head of the new ARCA structure will be reduced from 32 million pesos to 4 million (approximately $4 thousand), the amount received by Argentine ministers. The salaries of the heads of the General Directorate of Taxation (DGI) and the General Directorate of Customs (DGA) will also be reduced from 17 million pesos to the level of the Secretary of State’s salary.
The main objectives of the ARCA will be not only to reduce government spending, but also to increase the professionalism of the staff, eliminate corruption schemes and improve efficiency in tax collection and customs operations.
Meanwhile, in Ukraine, the tax authorities want to gain access to data on bank accounts of Ukrainians and businesses.
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