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What does ARCA mean, the name that the organization that replaces the AFIP will carry?

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The AFIP (Federal Administration of Public Revenues) was dissolved and will be replaced by another fiscal body. This was reported by the presidential spokesperson, Manuel Adornion the afternoon of Monday, October 21 during a press conference: “The Government very happily announces that as of today the AFIP will cease to exist.”. His replacement will be named ARCA. In that sense, many people wonder where this name comes from and what is known so far about its operation.

The name ARCA is an abbreviation of Customs Regulation and Control Agencyas the tax entity is called in Argentina from now on. As detailed in the statement released by the National Government through the account X of the President’s Officeit is “an organization with a simpler, more efficient, less expensive and less bureaucratic structure.” In that sense, he details: “The creation of ARCA Its objective is the reduction of the State, the elimination of unnecessary positions, the professionalization of the entity, the destruction of corrupt circuits, and the improvement in the efficiency of customs collection and control, eliminating the privileges of the past and optimizing public management. ”.

ARCA will be in charge of Florence Misrahiwho was the official of the AFIP during the management of Javier Milei. She will be the one who will lead the entire change process together with Andrés Gerardo Vázquezwho will take over as head of the DGI (General Tax Directorate), and José Andrés Velisnew head of the DGA (General Directorate of Customs).

Florencia Misrahi, the current head of the AFIP, will be in charge of ARCALA NACION/Soledad Aznares

According to Adorni, from the creation of the new Agency the dismissal of 3,155 employees who irregularly joined the AFIP during the last Kirchnerist government. This is equivalent to 15% of the current allocation, according to the Government. In addition, will be removed Hierarchy Account for senior positions, so the salary of the head of the entity and the heads of the DGI and the DGA will be reduced. The amount of salaries to be reviewed would be between 16 and 30 million pesos, according to Adorni.

According to what was stated in the aforementioned document and by Adorni himself, this measure will reduce the higher authorities by 45% and the lower levels by 31%, which represents an elimination of 34% of the current structure. This will generate “an annual savings of 6,400 million pesos”.

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