Argentine government will fire over 3,000 employees after closing tax agency

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By LatAm Reports Staff Writers

This is a cut of “15 per cent of the current endowment,” which the executive considers “an essential step to dismantle unnecessary bureaucracy.”

Javier Milei’s Argentine government announced Monday the dismissal of 3,155 employees of the Federal Administration of Public Revenue (AFIP), which will be replaced by the future Customs Collection and Control Agency, a new similar body but with “a simplified structure.” 

The government “will proceed to dissolve the Federal Administration of Public Revenue, the Customs Collection and Control Agency will be established (…) and 3,155 agents who entered the AFIP irregularly during the last government will be disassociated,” the Office of the President said in a statement released on the social network X. 

This is a cut of “15 % of the current endowment,” which the executive considers “an essential step to dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines.” 

In addition to replacing the AFIP with the ARCA, salaries will be reduced from the agency’s senior officials and “the destruction of corrupt circuits will be sought,” according to the bulletin. 

The ultraliberal president Milei implemented numerous deregulatory measures in the local economy and the state structure, reducing ministries from 18 to eight and reducing or eliminating other state agencies. 

As a result of its cuts and its economic policy, Milei has achieved surpluses in public accounts. 

But the domestic economy suffers from an economic recession, with inflation that in September was 209 percent and a poverty that reached 52.9 percent of the population in the first half of the year.

This article has been translated after first appearing in Diario El Mundo