The president of Argentina dissolves the tax office

President Javier Millay dissolves AFIP (Argentina’s tax office) and creates a new, smaller debt collection agency. Meanwhile, directors’ salaries are being cut by 90%, senior management and “policy staff” salaries are being cut by 45%, and lower-level salaries are falling by 30%.

The Federal Administration for State Revenue in Argentina will in the future be replaced by an Agency for the Collection of Debts and Customs Control – a change that led to the closure of 3,155 jobs, reports AFP, cited by BTA. The groups refer to a statement from the president.

This is “a necessary step towards the elimination of unnecessary red tape that hinders the economic and commercial freedom of Argentines,” said statement X. It will allow a 15 percent cut in costs to this authority.

Since coming to power, the ultra-liberal President Javier Millay has made several major cuts in state agencies. In particular, he reduced the number of ministries from 18 to eight, cut the staff of other government agencies or even eliminated them.

Millais’ austerity policies have led to a significant slowdown in inflation, down to around 4 percent per month (compared to an average of 17 percent in 2023), and consistent monthly budget balances not seen in 15 years .

However, it also led to a sharp decline (forecast of -3.5 percent at the end of 2024), a decrease in economic activity and the loss of thousands of jobs.

According to data published at the end of September, poverty in Argentina, which has been rising continuously for two years, reached 52.9 percent of the population in the first half of 2024, a jump of over on 11 points in six months.

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