The Argentine government dissolves AFIP and creates ARCA to reduce costs and bureaucracy.

The announcement by the Argentine government regarding the dissolution of the Federal Administration of Public Revenues (AFIP) has sparked a wide range of reactions in the political and social spheres. Manuel Adorni, the government spokesperson, has communicated with satisfaction that the AFIP will cease to exist to make way for a new agency known as ARCA, whose main objective is to reduce costs and eliminate unnecessary bureaucracy. This radical step is part of the reform agenda promoted by President Javier Milei.

The decision to dismantle the AFIP, an institution that has been fundamental in tax collection in Argentina, comes at a critical time for the country, which faces significant economic challenges. According to data provided by the government, the measure is expected to result in an annual savings of 6.4 billion pesos, equivalent to more than 6 million euros. This cut translates to a 34% reduction in the current structure of the AFIP, which, at first glance, seems to be a decisive step toward administrative efficiency.

One of the most controversial aspects of this reform is the relocation of approximately 3,155 employees, representing 15% of the AFIP's workforce. The government has argued that these workers were hired in an "irregular" manner during the previous administration, which has sparked a debate about the management of public employment in Argentina. The measure has been met with skepticism by some sectors, who point out that laying off public employees will not necessarily lead to an improvement in state efficiency.

Additionally, the government's plan includes a drastic salary reduction for the high-ranking officials of the new agency. Adorni has highlighted that the head of the AFIP received a monthly salary exceeding 30 million pesos, a figure considered exorbitant in the current context of the country. With the implementation of these cuts, the salaries of the directors of ARCA will be comparable to those of ministers and state secretaries, a measure aimed not only at saving money but also at ethically revaluating salaries in the public sector.

The creation of ARCA, according to the official statement, aims not only at reducing public spending but also at simplifying processes related to tax collection. The government claims that this restructuring will allow for better taxpayer service, although many analysts warn that the elimination of bureaucracy will not necessarily translate into an improvement in the quality of services.

However, the dissolution of the AFIP has generated concern in certain sectors of society, especially among taxpayers and tax specialists. There are fears that the creation of a smaller and less bureaucratic agency could affect the state's ability to oversee and control compliance with tax obligations. The uncertainty about how the transition will take place and what mechanisms will be implemented to ensure collection has led some sectors to demand greater clarity regarding the details of the new plan.

The political opposition has criticized the measure, arguing that the government is prioritizing fiscal adjustment over the welfare of public employees. Many believe that the reduction of personnel and the elimination of the AFIP could leave a gap in fiscal oversight that could be exploited by those seeking to evade their tax responsibilities. This criticism raises the need for a balance between administrative efficiency and the protection of workers' rights.

On the other hand, some citizens have celebrated the measure, viewing it as a necessary step for a government that promises to eradicate corruption and inefficiency in public administration. For these sectors, reducing bureaucracy is a desired goal that could facilitate the business environment and stimulate investment in the country.

In short, the dissolution of the AFIP and the creation of ARCA mark a significant change in Argentina's economic policy. While the government defends the measure as a step toward a more agile and less costly state, the long-term effects of this decision remain to be seen. In a context of economic crisis, the country is closely watching how this transition will unfold and what impact it will have on the relationship between the state and its citizens.