The Argentine government announced on Monday the dissolution of Argentina's bloated revenue and customs service, the Federal Agency for Public Income (AFIP).
The decision is part of President Javier Millay's policy to “downsize the state and eliminate inefficient structures.” AFIP will be replaced by the Customs Collection Administration Agency (ARCA). ARCA is a simpler, more streamlined, “lower cost, less bureaucratic” organization, with significantly lower top salaries.
“The Government is very pleased to announce that as of today, AFIP will be abolished. In its place, the Customs Collection Administration will be created with a simplified structure,” Presidential Spokesman Manuel Adorni said. said. said Reporters at a press conference on Monday.
Adorni explained that replacing AFIP with ARCA would eliminate 45 percent of senior positions and 31 percent of junior positions. The spokesperson emphasized that the reduction will result in “the elimination of 34 percent of structures, resulting in annual savings of 6.4 billion pesos (approximately $6.5 million).”
The presidential spokesperson also explained that approximately 3,100 AFIP employees (15% of current employees) who were “temporarily employed” during the administration of former socialist President Alberto Fernández will be transferred to other positions. .
“This measure is based on the current overstretched structure, which has limited ability to respond nimbly and efficiently to the demands of tax, customs and social security systems, and which has implications for the management and management of public resources. “Importance of Customs Activities'', Adorni explained.
The Argentine presidential administration confirmed this announcement in an official statement. statement The announcement was made shortly after Adorni's press conference, in which he stressed that the job cuts were an “essential” step to “dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines.”
The Argentine President's Office explained that ARCA will abolish tiered accounts for high-level positions in AFIP, which will significantly reduce the salary of the head of the agency.
As the Presidency explained in a statement, the AFIP chief currently earns a monthly salary of 32 million Argentine pesos ($32,500). The cuts will bring his salary to 4 million pesos (about $4,000), the same amount as the country's cabinet ministers earn.
The salary reduction will also affect the salaries of the directors of the Directorate General of Taxation (DGI) and General Administration of Customs (DGA), who currently receive P17 million per month and will receive salaries equal to those of the secretaries. of the nation.
According to an Argentine newspaper citing government officials, La Naciónthe salaries of the highest ranks of the now-dissolved AFIP far exceeded those of the President of the Republic, ministers, and members of the Supreme Court.
The top level of the new Argentine Revenue Agency will reportedly retain current AFIP Director Florencia Misrahi as general administrator, but there will be two new directors-general, one in charge of taxes and one in charge of taxes. The other person will be in charge of customs.
“The Argentina of financial greed is over. What belongs to each Argentine is his own and no one else's. There are no state bureaucrats with the authority to tell Argentines what to do with their property.” said Adorni. said. “As stated in the principles announced by the President at his inauguration ceremony on December 10, liberalism is based on the inalienable principles of protection of life, property, and liberty, and the unrestricted respect for the life plans of others. It is.”
“That liberalism is what led us to be one of the world's leading powers in the late 19th and early 20th centuries, and we want to move towards Argentina without AFIP or INADI.” [“anti-racism” government office dissolved by Milei in August] And no other organization restricts the freedom of good people,” he continued.
Adorni told reporters that the government's intention is to establish more accurate management and evaluation systems and improve transparency and accountability in order to “pursue more efficient and results-oriented public management.” He emphasized.
President Javier Millay celebrated the dissolution of AFIP on his social media accounts, posting the message: “Goodbye AFIP.” Twitter his account and photos Instagram The account read, “Salutes to the departing AFIP,” and featured a chainsaw with the message “Decay of the Nation” written on it.
Millais followed up her Instagram post with a photo of a lion drinking water from an artificial intelligence-generated mug with the words “Tears of AFIP” written on it, along with the widely famous catchphrase “Long live freedom, damn it!” Ta.
Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.
