The government of Javier Milei announced yesterday, Monday, October 21, the suppression of the Federal Public Revenue Administration (AFIP) and its replacement by the Customs Collection and Control Agency (ARCA). This change, however, does not alter the current tax system in Argentina.
Presidential spokesperson Manuel Adorni communicated that the AFIP will cease to exist, giving way to ARCA, an organization described as “simpler, more efficient, less expensive and less bureaucratic.”
The new collecting entity seeks to “reduce the higher authorities by 45%,” which Adorni described as the political caste, and the lower levels of the current structure by 31%, which represents an elimination of 34% of public positions in total.
A release of the presidency detailed that This measure implies the dismissal of 3,155 agents“who entered the AFIP irregularly during the last Kirchnerist government, which is equivalent to 15% of the current staff.”
The executive stressed the importance of this step, which is “essential to dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines.”
The creation of ARCA is framed by objectives to reduce the State, professionalize the entity, destroy corrupt circuits and improve efficiency in customs collection and control.
In addition, a drastic salary reduction was announced for senior officials. The president of the organization will go from earning almost $26,000 a month to just over $3,000. A similar situation will affect the directors of the General Tax Directorate (DGI) and the General Customs Directorate (DGA).
The Argentine tax system sees the change without care
Despite this restructuring, the Argentine tax system is not affected. Marcos Zocaro, accountant and tax advisor, commented that This does not change anything in the tax situation of Argentines. “Since taxes and their respective regulations are not modified,” he explained.
“This means that, for citizens, the change from AFIP to ARCA is purely administrative, without alterations in the payment of taxes,” he indicated.
Martín Litwak, Argentine lawyer, was more critical, describing the movement as “make-up”: “Until there is a paradigm shift, this distribution will always be the enemy of tax payers,” he questioned.
“In addition, the fact that the same person who was in charge of the AFIP was responsible for this restructuring raises doubts in me. What really needs to be changed is the current tax regime, not who manages the collection of taxes,” Litwak lashed out.
Taxes for using bitcoin paid by ARCA
This change implies that ARCA will manage the payment of taxes related to the use of bitcoin and cryptocurrencies in Argentina, without changes to current tax obligations. As reported by CriptoNoticias, cryptocurrency companies and users in Argentina face various taxesa scenario that continues without modifications for now.
The cryptocurrency laundering process promoted by the Milei government, previously handled by AFIP, will also move to ARCA, although the publication of new guidelines is expected on how to declare these assets.
Despite Milei’s rhetoric against taxes, specialists such as Litwak and Zocaro agree that this change is superficial and does not address the underlying problem of the Argentine tax system. The expectation now is on how ARCA will address these and other aspects of collection, maintaining the debate on the need for a deeper tax reform.
This article was created using artificial intelligence and edited by a human Editor.