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Argentina intends on dissolving tax authority
(MENAFN) The Argentine government has announced its intention to dissolve the existing tax bureau, the federal Administration of Public Income (AFIP), in favor of a newly established agency designed to simplify tax administration. This restructuring plan, unveiled on Monday, involves a significant reduction in staffing, with over a third of positions set to be eliminated.
Under the new framework, AFIP will be rebranded as the customs Revenue and Control Agency. The government aims to cut approximately 3,155 jobs from the current workforce, which it deems "irregular" and problematic, particularly in light of hiring practices under former President Alberto Fernandez’s administration. This move is part of a broader initiative to streamline government operations and eliminate what officials describe as inefficient bureaucratic structures.
The restructuring will see a 45% reduction in senior-level positions and a 31% cut in lower-level staff. These changes are expected to yield annual savings estimated at around 6.4 billion pesos, or approximately $6.6 million. Government officials believe that this overhaul is crucial for dismantling unnecessary bureaucracies that have impeded economic and commercial freedoms for Argentine citizens.
In a statement reflecting the administration's goals, officials asserted, “The step is essential to dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines.” The new agency is being positioned as a more streamlined, cost-effective, and less bureaucratic entity, aiming to better serve the public.
Presidential spokesman Manuel Adorni emphasized the philosophical shift underlying this reform, stating, “The Argentina of fiscal voracity is over. What belongs to every Argentine is theirs and no one else’s. No state bureaucrat should have the power to tell them what to do with their property.” This sentiment underscores the current administration's focus on reducing state control and enhancing individual freedoms.
Under the new framework, AFIP will be rebranded as the customs Revenue and Control Agency. The government aims to cut approximately 3,155 jobs from the current workforce, which it deems "irregular" and problematic, particularly in light of hiring practices under former President Alberto Fernandez’s administration. This move is part of a broader initiative to streamline government operations and eliminate what officials describe as inefficient bureaucratic structures.
The restructuring will see a 45% reduction in senior-level positions and a 31% cut in lower-level staff. These changes are expected to yield annual savings estimated at around 6.4 billion pesos, or approximately $6.6 million. Government officials believe that this overhaul is crucial for dismantling unnecessary bureaucracies that have impeded economic and commercial freedoms for Argentine citizens.
In a statement reflecting the administration's goals, officials asserted, “The step is essential to dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines.” The new agency is being positioned as a more streamlined, cost-effective, and less bureaucratic entity, aiming to better serve the public.
Presidential spokesman Manuel Adorni emphasized the philosophical shift underlying this reform, stating, “The Argentina of fiscal voracity is over. What belongs to every Argentine is theirs and no one else’s. No state bureaucrat should have the power to tell them what to do with their property.” This sentiment underscores the current administration's focus on reducing state control and enhancing individual freedoms.
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