Argentina's government overhauls tax agency amidst austerity measures and rising poverty
Argentina’s government announced the restructuring of its tax system on Monday, October 21, as part of ongoing austerity measures aimed at improving the nation’s financial stability.
The Federal Administration of Public Revenues (AFIP) will be replaced by the newly established Tax Collection and Customs Control Agency, designed to streamline operations and enhance efficiency, Xinhua reports.
Manuel Adorni, the presidential spokesperson, shared the news during a press conference, stating, "This will mean a budgetary savings of around 6.4 billion pesos a year (about $6.5 million)."
President Javier Milei, who assumed office in December 2023, has introduced a series of austerity measures to combat the country's economic challenges, including significant layoffs of state workers and drastic spending cuts.
These measures have sparked widespread unrest, with hundreds of thousands of Argentine students protesting against Milei’s budget cuts earlier this month. The administration's threats to veto a recently passed law in Congress that aimed to guarantee university funding have only intensified the backlash.
The impact of President Milei's austere policies is evident, as the poverty rate in Argentina has surged to nearly 53% in the first half of 2024. An increase from 41.7% at the end of 2023 when he took office and more than double the 26% reported seven years ago.
