Argentina’s government announced in a release on 21 October 2024 that the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos —AFIP) will be abolished, and the Tax Collection and Customs Control Agency (Agencia de Recaudación y Control Aduanero—ARCA) will be created to replace the former tax agency.
ARCA will have a simplified structure: the top authorities – the political caste – will be reduced by 45%, and the lower levels of the current structure will be reduced by 31%. As a result, 34% of public posts will be eliminated. In addition, some 3,100 employees who irregularly entered during the last government will be relocated. This initiative is estimated to save the Argentine government around ARS 6.4 billion per year.
The government announced the removal of VAT exemptions on newspapers, magazines, periodicals, and subscriptions to digital newspaper editions. With this change, individuals engaged in the specified activities will pay VAT on par with other economic participants without preferential treatment. This measure is expected to increase government revenue by ARS 264 billion.
