South American Country Plans to Disband Tax Agency

The Argentine government intends to disband the existing tax authority and create a new entity, resulting in a reduction of one-third of its workforce. Read Full Article at RT.com

South American Country Plans to Disband Tax Agency
The Argentine government has unveiled its intention to dissolve the existing tax bureau and establish a new "simplified" agency, resulting in a reduction of just over one-third of its workforce.

On Monday, the government issued a statement indicating that the Federal Administration of Public Income will be rebranded as the Customs Revenue and Control Agency. To streamline operations, more than 3,000 positions within the current agency will be cut as part of the restructuring aimed at eliminating “inefficient structures.”

The plan involves a significant reduction in senior-level positions, with approximately 45% being eliminated, while lower-level staffing will face a 31% reduction. Government estimates suggest this overhaul could yield annual savings of around 6.4 billion pesos.

“The step is essential to dismantle the unnecessary bureaucracy that has hindered the economic and commercial freedom of Argentines,” the statement emphasized, noting that the new agency will provide “a more simplified, more efficient, less costly and less bureaucratic structure.”

Additionally, the statement characterized the employment of 3,155 workers in the current agency as “irregular” and raised concerns about the legality of their hiring under former President Alberto Fernandez, whose administration has been criticized by the current government led by Javier Milei.

“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,” said Presidential spokesman Manuel Adorni, as reported by the Buenos Aires Times.

Milei, who took office in December 2023, has committed to reducing the state sector workforce by 70,000 jobs and discontinuing over 200,000 social welfare programs in his shock therapy reforms designed to stabilize the nation’s struggling economy. His budget-cutting initiatives encompass the elimination or downsizing of various government ministries and agencies.

In response to the announcement, the union representing the affected employees has declared plans for a strike. “We are going to mobilize and we will take more measures as soon as we know the details. The most worrying thing is the 3,100 jobs of our colleagues,” stated union chief Pablo Flores to the Buenos Aires Times.

Sanya Singh contributed to this report for TROIB News